How Much Money Can You Make Investing in Stocks? - Deepstash
How Much Money Can You Make Investing in Stocks?

How Much Money Can You Make Investing in Stocks?

Curated from: medium.com

Ideas, facts & insights covering these topics:

4 ideas

·

1.47K reads

21

Explore the World's Best Ideas

Join today and uncover 100+ curated journeys from 50+ topics. Unlock access to our mobile app with extensive features.

How Much Does the Stock Market Return?

How Much Does the Stock Market Return?

Most analysts agree that historically the stock market has returned an average of 7% — 10% per year over the last 100+ years.

Now, the first thing to understand is that 7% — 10% is an average return over long stretches of time. It’s not what you should actually expect to return each year.

For example, in 2008 the S&P 500 (a collection of the 500 biggest companies on the market) returned a devastating -38.5% loss as the stock market crashed. The very next year, it rallied for a strong +23.5% return.

21

555 reads

How Much Do Dividends Contribute to Stock Market Returns?

History shows that dividends play a large role in stock market returns over time.

While it varies by decade, over time dividends have contributed about 40% of the total return of the stock market.

22

357 reads

While Some Investors Are Good at Buying Stocks, Most Are Not

Most investors tend to make big mistakes that prevent them from achieving 7% — 10% annual return.

The average investor tends to make common mistakes that devastate his returns. Extraordinary investors can actually beat the market over the long term, earning more than 7% — 10% in annual returns. Every extra percentage point of annual performance will make an enormous difference in your long-term wealth. The magic of compound interest is the key to compounding your returns over the long term.

19

266 reads

Stocks and Compound Interest — 5 Big Lessons

When it comes to the power of compound returns in the stock market, there are five very important takeaways: 

  • The longer you’re invested in the market, the more your money will grow. 
  • The higher your annual investing returns, the more your money will grow. 
  • Small improvements in your investment returns can make a HUGE difference in your wealth over time. 
  • The more you can avoid paying taxes on your investment gains, the more your money will grow. 
  • Solid stock investment returns compounded over long periods of time create almost magical amounts of wealth. 

26

293 reads

IDEAS CURATED BY

stevlove

Copywriter in advertising

Steven Love's ideas are part of this journey:

Upskilling: Preparing For The Future

Learn more about economics with this collection

Identifying the skills needed for the future

Developing a growth mindset

Creating a culture of continuous learning

Related collections

Similar ideas

Investing for beginners

8 ideas

Investing for beginners

moneysavingexpert.com

Read & Learn

20x Faster

without
deepstash

with
deepstash

with

deepstash

Personalized microlearning

100+ Learning Journeys

Access to 200,000+ ideas

Access to the mobile app

Unlimited idea saving

Unlimited history

Unlimited listening to ideas

Downloading & offline access

Supercharge your mind with one idea per day

Enter your email and spend 1 minute every day to learn something new.

Email

I agree to receive email updates