Regarding investments, especially the stock market, it is tough to choose which investment will be the best. Even bigger investors find it hard to decide on which investment would be the best for them. Sometimes they fail to invest in the right company and lose their money. It requires a lot of effort and occasionally logical thinking too. I was able to be successful with some long-term investments. I'm not sure what my portfolio value will look like after 10 more years but in the last 5 years it has given me a good value and that's a great boost. I consider this itself as a long term.
Invest long term
This has been the strategy followed by many big investors. I have experimented with this and it has worked out very well. I was trading frequently about 5 years back. I used to do a lot of day trading and have experienced the market in and out. I lost a lot of money and I earned some money too. But from what I learned, I have seen a great increase in the value of my portfolio for my long-term investments. Choosing the right stock plays a very important role and the market trend should also be favourable. I guess both worked out very well for me in the last 5 years and today I regret for not investing more than this in the share market.
Avoiding a technology
Today there might be some technology that can be very fancy and it can be the trend but gradually if there is a new technology that can be a better one, people will forget the old technology. Today we have solar panels and we keep saying that the energy sector is going to be the next biggest trendsetter. But remember if there is a new invention that produces an enormous amount of energy without having to use windmills or solar panels, it is obvious that people will start inclining to that technology.
Maybe we can stay up to date with the trend and switch at the right time or invest in non-technology companies that will always be there despite the market and trend. For example, if we are investing in a very good shoe company, we can be sure that people might need shoes even after 20 years, and if the company does well, it will stay in the market, unlike technology companies. This is one way of looking at it, especially for long-term investors.
No harm but choose the right product
There is no harm in picking a product company and investing in them. The challenge can be that some products may get outdated in the years to come. For example today people use calculators on their mobile phones and it is available in the internet that can be accessible through mobile phones. The need is changing and if we are running a company that manufactures physical calculators it may be of great help for some places but overall the need is less. It is good to switch to a better business and at the same time people who invest in that should also reconsider.
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