You love to see it.
We’re big proponents of long-term investing at MyWallSt and buying great companies with bright futures, so congratulations to all the multi-bagger winners out there. Some honorable mentions go to u/CityForAnts with a return of over 12,000% on Microsoft, u/bitskreig who made above 3,300% on AMD, and u/Upleftdownrightleft who gained more than 5,600% on their Netflix shares.
How did they get these multi-bagger returns?
By doing nothing. When it comes to investing, time really is your best friend. All of these investments were let sit for multiple years, perhaps even decades to accumulate those returns. The longer you hold an investment, the greater the benefit investors get from compound interest, which is exactly what happened here.
What can investors learn from this?
Of course, you need to do your own research before investing in any individual company, but there’s a lesson here. Unless something drastically changes with the business you invested in, remain steadfast in your conviction. Managing emotions and temperament is difficult to get a grasp of, and everyone makes mistakes starting out. But remember, we’re investing for ten years, not ten minutes, so avoid trading in and out of different stocks frequently — short-term blips in price action won’t even be recognizable in 5-10 years if you’ve chosen solid companies.
We can’t expect to see life-changing returns overnight without putting capital at extreme risk, so it’s important to moderate expectations. This can be achieved by creating a balanced portfolio of mixed risk stocks — not just blue chips, but up-and-coming disruptors and growth stocks too — as well as developing a practical approach to researching companies.
If you’re interested in the resources we look at for stock picking, you can download our free Learn app here, but more importantly, when it comes to your investing life, decide your own strategy and make sure to stick with it long enough to reap the rewards.
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Financial Writer at MyWallSt
David's favorite stock is Google. He's a daily user of its YouTube platform, where you can learn or find something brand new at the touch of a button. He believes the company will continue to grow for many years to come.