What profitability for the stock exchange in the long term ?

Are you currently looking for profitable investments? Are equities part of relevant and profitable long-term investments? State of play on this classic placement that seduces many French people looking for a successful investment.

Investing: Are equities profitable?

When it comes to making investments, the first question that comes to the mind of the individual investor is the question of profitability . A good investment can take off the profitability of your investment, just as a hasty and lacking anticipation or valuation investment can make all your hopes fall… and your finance.

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As such, it seems fair to ask the question of the profitability of shares. An action has a fundamental principle: to fluctuate according to the general state of the world and what is happening in the country to which it is attached. When a company is listed on the stock exchange, we know, it is even or double , while knowing that the wheel is spinning.

But then, “if I invest in stocks and stock exchanges with the hope of being profitable in my stock choices, is this the best decision to make”? Well, it all depends on many criteria, which will play on the profitability of the chosen actions.

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Investment and equities: a long term story

First of all, it should be noted that when an investment is made on stocks and on the stock exchange, one should generally not expect a optimal short-term profitability. Stocks and the Stock Exchange are a story of patience and profit in the long run .

A study published in 2013 and still to the taste of the day showed that an investment on the stock exchange in French shares held over 25 years (by reinvesting dividends) yields an average profitability close to 6% . We are talking about average and nominal returns: imagine this return, on sums added to each other according to the various actions you have chosen.

You get profitability that is not negligible, while taking into account precisely the observed rate of inflation (real return). A performance that leaves no marble and encourages many investors to follow the step by embarking on investing in equities.

Shares, an investment performant

To the question: “Are equities a successful investment? so everything is relative and it is important to compare what is comparable. If you are looking for short-term profitability, you are certainly not in the right place. If, on the other hand, you own capital that can be invested on the stock exchange and can quietly “sleep” while slowly progressing on their profitability , then “Bingo!

” For example, if we talk about performance and annual real average return:

  • Booklet A does not reach 1.50% per annum;
  • Gold does not reach 4% per year;
  • Real estate also does not reach 4% per year.

However, everything is to be put in parallel and relativize. If the investment in shares is of course risky, it is “confident” that you take that risk. In the short term and with strong capital, the profitability of shares can vary rapidly.

On the other hand, in the long run, you do not have much to worry about , since your money will fluctuate according to financial movements. It is in full consciousness that you allow it to progress, and that you gradually reinvest the dividends obtained.

Do you have capital to invest and are ready to try the stock exchange and equity investment? We advise you to perform a stock exchange simulation, which will give you a better idea of the potential profitability of your choice of investment.