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One of the reasons why long-term investment is important is that it can take longer time to work.

利益 Interest is a mechanism that makes profits even more profit by turning profits into investments again.

However, it is not a mechanism that魔法els like magic in a short time. It makes it easier to ally time.

What is compound interest?

利idity is a mechanism to reinvest the profit obtained by investment, and to gain the following profit for the total of the original and profit.

The idea that monolith is profitable only to the original. In addition to the original book, it is a way to make profits to the past.

Future amount = original book × (1 + yield) ^Number of years

It feels difficult to see only this expression, but it is simple to say. If the yield is the same, the number of years increases.

Short term and long term

There are properties that are easy to use in the second half of the first few years.

For example, if you assume that you were able to operate 1 million yen in。 a year, simple calculations that do not consider taxes and fees are as follows:

YearFuture amount
5 yearsApprox. 12 million yen
10 yearsApprox. 163 million yen
20 yearsApprox. 26 million yen

The difference will be greater if it is 20 years. The effects of “starting fast” and “do not stop on the way”.

Common misunderstandings

ity is not guaranteed to increase assets.

Loss will occur if the investment target is lower. Yield is not constant every year. The numerals called年 per year are assumptions for explanations, and in actual operation there are positive and negative years.

That’s why you need to think about the long-lasting decentralization investment, not just focusing on one symbol.

Easy to use shape for beginners

It is not a fancy way to ally compound interest.

  • Reinvestment of profits and dividends
  • 買うide the timing to buy monthly
  • Never turn into investments
  • I don't sell all at once.

The most difficult thing is not calculation. If you open a securities account, it will be a real practice when the market falls.

Long-term investments are prone to long working hours.

However, it is not a story that “you can always stop if you leave it”. It is important to create a form that can be continued for a long time, including dispersion, accumulative, marginal, and reinvestment.

Reference

This article is for educational and informational purposes only, based on public information. It is not a recommendation or solicitation to buy or sell any specific security or financial product. Although care is taken with accuracy, the content and future investment outcomes are not guaranteed. Final investment decisions should be made at your own judgment and responsibility.