There are also numerous mature and cyclical stocks in the Averages and in the stock market. These may not appreciate over the years, but rather tend to fluctuate in a wide range, influenced to a large extent by the businesses, and quite a few go out of business each year. The magic of investing depends upon the magic of compounding. When you or your investment manager engage in a strategy of investing, which, probabilistically will average a good rate of return, then you may, over a period of years, as others have, turn a modest sum into a fortune. The key to this accomplishment is the dependability of the strategy of investing by which compounding at an average rate of return is feasible.
Many Strategies provide the opportunity to compound at a good rate of return.
One of the best is investing in the stocks of companies which are prospering, which are growing. You may have noticed that the stock market averages tend to rise over the years. This is primarily because there are a number of growth stocks in the Averages. These growth stocks appreciate as the values of their businesses rise as they keep on growing. There are also numerous mature and cyclical stocks in the Averages and in the stock market.