Why long term investment is good? You have heard of the phrase, The stock market always goes up. Invest for the long term. Just buy and hold in the long run. Is it really true that long term investment is more profitable? To test out this theory, I have decided to use the S&P 500 as a case study.

“Our favorite holding period is forever. We are just the opposite of those who hurry to sell and book profits when companies perform well but who tenaciously hang on to businesses that disappoint. Peter Lynch aptly likens such behavior to cutting the flowers and watering the weeds.”

The end goal here is to create a simple heatmap that shows the 1-year return, 2-year return… 5-year return all the way until 30-year return. The timeframe of this study is 30 years, so there