Camille Van Vyve
14 Feb 2024
Investing in the stock market is like wanting to win the Tour de France
Long-term investing can in many ways be compared to high-level sport. Given the summer period, we risk a little seasonal comparison: investment and cycling!
It's an endurance sport
If the Tour de France is so emblematic, it is because it is a long-term race. At the end of the 21 stages, it is the cumulative performance that pays, as in investing: even considering small "hiccups" along the way, the exponential effect of compound interest will allow the most tenacious investor to stand out.
Obligation to participate in all stages
If you miss a step, it's elimination! In the markets, it's pretty much the same: entering and exiting (i.e. buying and selling) is rarely a good long-term strategy, because it is almost impossible to correctly time periods of ups and downs. It is therefore better to stay invested throughout the entire period, even if it means suffering a few disappointments, but being sure not to miss the best moments.
The important thing is the general classification
Winning a stage is nice, but it doesn't guarantee you the yellow jersey! In investment as in the Tour, the big winner is distinguished by his endurance rather than his flamboyance. Similarly, the active manager may beat the market in a given year… but will more than likely be beaten over an investment time of five years or more.
It takes a mind of steel...
The market and the Tour are roller coasters. Some days are better than others, there are climbs, descents, plains, passes... To stay the course, you must above all not let yourself be overwhelmed by your emotions. Endure the inevitable difficulties, sweep away the doubts, and hold on until the end!
…and rigor
In addition to showing a certain mental strength, cyclists, like all top athletes, must respect a certain discipline. Daily training, adapted diet: you can never rest on your laurels. Likewise, to bear maximum fruit, long-term investment requires regularity. Investing at fixed intervals, whatever the context, is the best way to maximize your return!
No athlete without a coach
Have you ever seen a top athlete rise to the top without the help of a coach? It's obviously not impossible, but it's rare. Because the athlete's worst enemy, like that of the investor, is himself! To keep faith, focus and energy, there's nothing like putting into practice the advice of an experienced coach. Acclaimed twice in a row by Test Achats Invest magazine, Easyvest is certainly a wise choice for investors looking for good advice and performance.