Long-term investors are those who set themselves long-term goals and structure their portfolios in such a way that their investments only bear fruit over a longer period of time. This strategy involves not being influenced by temporary market fluctuations, which often lead many investors to react impulsively and change their investment portfolio.
A long-term investment strategy tends to favour investments in companies that are sound, i.e. geared to creating value over the long term. The aim is to make capital gains, i.e. to increase the value of investments, but this strategy is the opposite of trading (which relies precisely on intraday price movements of financial instruments).
However, this type of investor is not exempt from certain risks. First of all, there is the liquidity risk, in that the early withdrawal of the sums invested can result in a significant loss of capital ('capital loss'); this is why many experts recommend that you first build up a very liquid fund that can be called on if necessary. Another risk that should not be overlooked is the fluctuation in the price of the securities purchased, even in the long term.
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