Hold to Grow: The Power of Long-Term Investing

Holding an investment for over a year converts short-term capital gains to long-term capital gains, resulting in lower tax rates. The wealthy often adopt a strategy of holding onto assets indefinitely, benefiting from unrealized gains and compounding returns over time. By postponing the sale of investments, individuals can allow their capital to work in growing businesses, leading to significant gains upon eventual sale. Paying taxes signals financial success, and navigating this efficiently is part of the wealth-building journey.