This is how long -term loyalty for the actions of the United Kingdom can lead to dazzling returns!

It may be tempting to buy and sell shares based on short -term market movements. However, history shows us that adopting a patient approach to invest in the actions of the United Kingdom can be a better way to develop long -term wealth.

Shares investment can be a trip full of potholes. As we saw more recently in 2020 with the pandemic, the markets can sink quickly, which carries the portfolios of investors in a sea of ​​red.

But maintaining the course and maintaining quality actions can lead to higher yields over time. Fresh data of the Etoro trade platform perfectly illustrate the value of this strategy.

A timely throw

According to Etoro, “Loyalty is as crucial to invest as in romantic relationships.“And in a perfectly scheduled report for Valentine's Day, you have the numbers to support your view.

When studying Bloomberg data and the Bank of the Federal Reserve of St. Louis, it concludes that the probability of making a positive performance of Ftse 100 The actions are:

• 66% for a year
• 73% in five years
• 85% in 10 years
• 83% for 20 years

The same trend can be seen with US actions, such as the possibility of generating profits with S&P 500 The actions are in:

• 72% for a year
• 81% for five years
• 83% in 10 years
• 95% for 20 years

According to Etoro's global market analyst, Lale Akoner, “,”The time in the market exceeds market time. There are ups and downs to invest as in relationships, so it is important not always panic at the first view of a red flag“

Thinking as buffett

This does not mean that investors should always hold on to their actions if circumstances change. In fact, Etoro says that the probability of enjoying a positive return of Stoxx 600 The actions have decreased over time, in:

• 66% for a year
• 66% in five years
• 61% for 10 years
• 47% for 20 years

But as in other aspects of life, investment throws some anomalies from time to time. The weight of evidence shows that buying shares with the intention of maintaining them for a prolonged period, for example, five years or more, provides investors the best opportunity to obtain solid performance.

The multimillionaire investor Warren Buffett is a perfect example of how a patient approach can bear fruit. The participation of the lion in its wealth has been done decades after it began to buy shares.

Keep the course

Agumo a long -term approach to my own wallet. Let me give you the example of Legal and general (LSE: LGEN) – The price of the action fell 14% within four months after the opening of a position last April.

Instead of the sale of panic, maintaining the course, and participation has recovered significant land. My possession is still low, but only 3%.

I am sure that, despite intense competition, legal and general actions will increase in the long term, since it is likely that interest rates decrease, increase sales and yields of their asset management arm.

I am also sure that your actions will increase as demographic changes promote the demand for retirement and savings products. Meanwhile, I hope the business continues to pay great dividends (its yield by 2025 is 9%).

Since 2005, legal and general actions have provided an average annual yield of 7.2% through prices and income income profits. I am convinced that it will continue to be a solid long -term commitment.