There’s an old saying that good investing is about time in the market, not timing the market. This belief supports the power of long-term investing. Therefore, staying invested helps protect returns and avoid costly mistakes. It may feel tempting to react to daily headlines. However, a steady “buy and hold” plan often delivers better results over the long term.
During periods of marketing volatility, investors sometimes feel pressure to sell when news looks bleak. But history shows the best trading days often come soon after the worst. Missing only a few can lower returns sharply. Our Geelong accountants and financial advisors at LBW help clients stay on track with long-term investing.
The cost of missing the best days
A clear example shows how missing top days reduces gains. Experts looked at the impact of missing the best trading days on the Australian share market between April 2000 and May 2025.
For example, over those 25 years, the S&P/ASX 300 Index returned 8.2% per year, with dividends reinvested. Missing the best 30 days dropped this return to 2.8% — cutting results by almost two thirds. Missing the best 20 days lowered the return to 4.3%, cutting nearly half the gain. Missing the best 10 days reduced it to 6% — about one quarter lower than staying invested.
These facts highlight how costly it can be to stay out of the market, even for a short time. When you feel uncertain, our Geelong accountants can help you make steady choices for long-term investing.
Long-term investing means staying the course
The best trading days often cluster near the worst days. This makes timing nearly impossible. For example, from the low on April 7 to the end of May, the S&P/ASX 300 gained 15.4% in just weeks.
Most of the top 20 trading days since 2000 happened during downturns like the Global Financial Crisis and COVID-19. This proves why long-term investing works best when you ignore short-term fear and stay invested. Our Geelong financial advisors can guide you during ups and downs.
Focus on what you can control
Successful investing is not about guessing what comes next. It relies on four steps that anyone can follow:
- Set clear, realistic goals.
- Stay well-balanced. Diversify because one year’s winner can be next year’s loser.
- Minimise costs. Every dollar paid in fees cuts future returns.
- Keep a long-term investing view. Avoid quick choices based on fear or excitement.
By following these simple ideas, it can help investors stay calm. They support steady progress over years, not days.
Our Geelong financial advisors and Geelong accountant team help clients stick to these basics.
Get help with long-term investing
History shows that missing just a few strong days can cost you years of returns. Staying invested often leads to better outcomes.
For help building a strong plan, speak with a Geelong accountant or one of our trusted Geelong financial advisors. Call (03) 5221 6111 or visit www.lbwca.com.au today to get started with confidence.
This blog provides general educational information only. The content does not take into account your personal objectives, financial situation or needs. You should consider taking financial advice tailored to your personal circumstances.
LBW Business + Wealth Advisors is an Authorised Representative of LBW Wealth Pty Ltd ABN 56 652 382 128 AFSL 534569. Please see our website www.lbwca.com.au or call 03 5221 6111 for more information on our available services.
