Many people think the best way to invest is to buy exactly at the market bottom. This idea sounds very smart, but real data shows a different story. Over the last 30 years, even if someone was very lucky and bought every year at the lowest point, the return was around 16 percent per year. This looks good, but it is not as special as many people imagine.
What If You Always Buy at the Worst Time
Now think about the opposite case. Imagine an investor who was very unlucky and invested every year at the highest point of the market. Even in this worst case, the return over 30 years was about 13.7 percent per year. This clearly shows that even bad timing did not destroy long-term returns as much as people fear.
The Power of Simple Regular Investing
There is also a third type of investor. This person does not try to predict anything. They invest once every year on the same fixed date and then do nothing else. This regular method gave a return of around 14.7 percent per year over 30 years. This is very close to the return of the so-called lucky investor.
Small Difference Between Best and Normal Results
When you compare all three cases, the difference is not very big. The best possible case gave around 16 percent, while regular investing gave around 14.7 percent. The worst case was only about 1 percent lower than regular investing. This clearly shows that perfect timing does not give a huge extra benefit.
No Need to Fear Highs or Chase Lows
Because of this, there is no need to worry about market highs or wait for market lows. Fear of buying at the top and greed of buying at the bottom do not add much value in the long run. These emotions only create stress and confusion for investors.
Discipline and Time Matter the Most
The most important thing is to invest regularly and stay invested for a long time. Returns of around 14 to 15 percent can grow very well when they compound over many years. Discipline and patience matter much more than trying to time the market. Staying calm and consistent is the real key to long-term wealth.
