How much time investments take to build wealth?

Being an investor, you already know the importance of long term investment. When you contribute for a long time, you get good results more than your expectations. Similarly, if you have chosen the right company which has offered good returns, you will get benefits with good returns.

Keeping long-term stocks in the portfolio is a good way to build wealth. But how much time it will take? Perhaps this is the question in your mind, right?

Remember that investing successfully is a bit tricky. It takes time to learn stock investment wisely. One should not expect good results in a short time. Most of the stocks take 3–4 years to show good results for investors. For small benefits, you can follow six months to 1-year investment.

Dividends

Dividends are one of the important terms through which you can make income. Big companies distribute benefits to their shareholders in terms of dividends. Most of the time companies distribute profits partially which means others will be used for other purposes like buying new assets, expansion, etc. They are distributed per share.

The main point is dividends grow for strong companies. If it keeps increasing, the investors’ net income will also increase.

Capital Appreciation

All investors know the right approach to investing, buy shares at low, and sell high. Whereas in stock investing, you can make money with capital appreciation, which means you can earn when the share price is high. But, there is no guarantee that the price will increase in short term.

Long-term Investment

You may have heard the investment stories of Wipro, Infosys, etc.

An investment with only 1000 in 1990 would have increased the amount by thousands of millions. But many investors also argue that keeping stocks for such a long time (25–30 years) is not possible, which is right.

However, also pay the attention to the amount spent. With such a little amount, you can wait for a long time especially when you already know the history.

Last Thoughts

Although long-term stocks are the key to make wealth, it will wrong to say that it takes too much time to double the money when Dividends and Capital Appreciation methods are there. Even if you spend 9–10 years, still you get good results.

If you don’t need money, put it in stocks, later you will get results.