1 minute read
Why Long-Term ?
from Group Project
Growth potential as one reason why investing in a company can be a smart long-term decision.
If a company has a strong business model and is in an industry with solid long-term growth prospects, it has the potential to significantly increase its revenue, earnings and cash flow over time. This growth can then translate to appreciation in the company’s stock price, leading to capital gains for shareholders.
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“At a minimum, investing allows you to keep pace with cost-ofliving increases created by inflation. Additionally, a long-term investment strategy can provide the possibility of compounding interest, or growth earned on growth (Making Smart Investments: A Beginner’s Guide, 2021)”.
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