Stocks rise and fall all the time. If you think the stock will be worth more in the future, ignore short-term drawdowns and focus on the long game.
What if I told you that you could invest in a stock at a $90 price today and sell it for more than $3000 in 22 years time? You’d probably bite my hand off for such a deal.
That’s exactly what you could have achieved if you invested in Amazon.com (NASDAQ: AMZN) 22 years ago in late-1999 and held the stock till today.
Source: Ycharts
A $1000 investment back then would have turned into more than $33,000 today. The chart above shows the trajectory of Amazon’s stock price over that 22 year period.
It looks like a pretty clean upwards trajectory but the stock price performance was actually anything but smooth. The chart below shows Amazon’s stock price from late-1999 to 2002 just after the dot com bubble burst....