Stocks & Shares outperform cash for the patient long term investor

Our mantra is to teach and educate everyone on the benefits of investing in a diversified portfolio of shares and stocks and to hold them for the long term. Unfortunately our education system and indeed our investment industry are poor in teaching the gospel of achieving financial security and freedom through stocks and shares. What is the result? The majority of savers leave their savings in cash, a poor long term asset. With the current level of inflation in most economies, cash is yielding negative returns. Whereas stocks and shares are perceived as risky, in reality cash is a riskier long term asset with the potential to be eroded by inflation. Cash savers miss out on the 8th Wonder of the World, according to Albert Einstein - compound interest. The compounding effect of re-invested dividends is the key to long term outperformance of shares.

A new report from Fidelity International has shown that £10,000 invested in the average UK savings account at the start of the financial crisis would now be worth £10, 461. The same amount in the FTSE all share index would now worth £16,846. Granted that past performance is no guarantee of future returns, several studies continue to show the outperformance of shares over cash for the patient long term investor. Over 40 years, it is virtually impossible to lose money on shares. Yet this message is lost on most savers who are content to leave their long term savings in cash.

We will continue to teach and educate and help anyone understand the principles of long term investment in stocks and shares. My book, "The Smart & Common Sense Investor" has been written to help the novice investor with a roadmap and a process to help them in their journey to financial security and freedom.

https://www.amazon.co.uk/dp/B00EFFU696