Investing evolves but some principles are evergreen, Charles Schwab reveals
Fifty years ago, many of today’s hottest investing preferences were the stuff of science fiction, but the fundamentals of investing were reassuringly similar.
To mark 50 years in the wealth management industry Charles Schwab has been asking its clients, including some who have been with the firm since the early days, for their insights into investing.
It found that some core themes – persistence, diversification, early and regular investing, investing through different cycles, and sticking with a plan – are clear keys to success, for both old and new investors.
“I hear regularly from clients, many who started with us at the beginning – forty, even fifty years ago – and they tell me that, more than anything, discipline, patience and learning from the occasional mistake pay off and have brought them a financial freedom they could only have dreamed of,” said Schwab founder and co-chairman Charles Schwab. “Fifty years of experience shows us that diligent investors reap consistent rewards and really are the smart money.”
Among the advice shared by some of those who have been investing for the longest time:
“We know that staying in the market longer pays off but were eager to hear directly from clients about the lessons they’ve learned along the way and to understand differences for those who’ve been at it longer and those newer to investing,” said Jonathan Craig, managing director and head of Schwab Investor Services. “Seeing the wisdom in a principled approach from our most experienced investors made a ton of sense to us. But we were pleasantly surprised to see that kind of thinking also reflected in large portions of investors across the entire age and experience spectrum.”
Most respondents (59%) said they wish they had
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