If you compare the returns offered by shares against cash kept in a savings account for any period since the Second World War, shares have totally outperformed, points out Richard Hunter of Nat West Stockbrokers. Shares have given a much superior long-term return against all other forms of investment for what is now a proven amount of time. In other words shares give clever investors an opportunity to make their money work hard, while others let their cash have an easy life of it by virtually slumbering in a savings account. However, many investors make a mistake by looking only for short-term gains. He recommends investors take at least a 10-year view of any share purchases.
History shows that taking a long-term view is the sure way to yield much better returns.
If they d kept the cash in simple savings accounts they would be sitting on a paltry 7,000, according to Barclays Global Investors. Let s just consider the last ten years to 1999. The same 100 in shares would have grown to a much better 263. It s your choice where you put your money, but ignoring shares as an option is clearly likely to be an expensive mistake. Choosing shares and the cost There is, of course, a lot more to understand before you even consider dealing in shares.