“Inflation is a silent thief,” warned Bestinver analyst Raquel Martínez Nistal in her speech at the Meetings in La Vanguardia session “Long-term investment”, held last week in Madrid and broadcast on the website of this newspaper. in which the portfolio and investment fund manager of Afi Inversiones Diego Mendoza also participated; and the professor of the Master in Stock Market and Financial Markets of the Institute of Stock Market Studies (IEB) Javier Niederleytner.
To avoid the loss of purchasing power caused by rising prices on savings, experts agreed on the recommendation to invest for the long term. Bestinver analyst Raquel Martínez Nistal advocates “planning” these investments based on the “objectives” with the help of “specialized professionals.”
“Just as when we have a health problem we go to the doctor or a legal problem to a lawyer, we have to lose the fear of going to financial advisors,” added Javier Niederleytner. “Investing is not something you can learn on the Internet in a video in 10 minutes,” warned Afi Inversiones portfolio and investment fund manager Diego Mendoza.
At Bestinver, with more than 35 years dedicated to analyzing companies in depth, in addition to seeking long-term returns, they try to ensure that “the investor has peace of mind, through transparency and communication,” which they convey through different channels, including a blog and an investment podcast, as well as a free application, Bestinver educatio, which is a “tool to inform yourself,” revealed Raquel Martínez Nistal.
“Traditionally there has been a lack of training in the financial field,” lamented Bestinver analyst Raquel Martínez Nistal, which is a challenge because “you need to understand to stay calm.” “Expanding financial education is crucial,” claimed Afi Inversiones portfolio and investment fund manager Diego Mendoza. From the IEB, in addition to masters and degrees, they also offer “introductory courses”, both for adults and children, explained professor Javier Niederleytner.
The financial strategy, in the opinion of the Bestinver analyst, allows you to “benefit from the benefits of compound interest, which allows the money to be reinvested.” With this type of long-term investment, she insisted, “a snowball effect” is achieved that allows savings to multiply.
“The fact that you accumulate the interest you generate helps you reduce the probability of losing money,” also highlighted the portfolio and investment fund manager of Afi Inversiones, Diego Mendoza, who “strongly agrees” with the “ importance of compound capitalization”. Long-term investment, in addition to advantages in terms of “profitability,” also allows for a “reduction in the risk associated with the investment,” the expert added.
“Traditionally, investment was mainly in real estate assets but now it is no longer sustainable and you have to look for other investment alternatives to build up your capital,” warned Bestinver analyst Raquel Martínez Nistal. The expert considers that there is an “erroneous belief that we Spaniards did not know how to invest and that is not the case.”
The professor of the Master in Stock Market and Financial Markets of the Institute of Stock Market Studies (IEB) Javier Niederleytner pointed out that “long-term investment has many versions and points of view” so, in each case, “you have to analyze the horizon well. investment and disposable income” when investing. “The key to long-term investing is establishing your time horizons,” he stressed.
Niederleytner is committed to “variable income and diversification.” “You also have to explain to people that you can also invest in the stock market for the long term and that when you invest in companies you are the owner and participant in them. We don't invest in stocks, we invest in companies. If these companies grow, a benefit is achieved from their growth,” she stressed.
“The economy has its cycles, but its long-term tendency is always to grow. If the economy grows, it is largely because companies grow and if I invest in them, my money will grow. The world grows in the long term,” said Diego Mendoza. “In the long term, the stock market is profitable. In periods of 7 years, the stock market is always profitable,” added the professor of the Master in Stock Market and Financial Markets at the IEB Javier Niederleytner.
The portfolio and investment fund manager at Afi Inversiones is convinced that “with a well-advised, managed and diversified portfolio, in the long term you can obtain returns that allow you to have a financial capacity in line with what you had planned.”
Diversification is one of the keys to investing in the long term, according to Bestinver analyst Raquel Martínez Nistal. “With diversified arteries you reduce the risk,” she explained. The first step is always “establishing objectives and setting the time horizon is the first step.” “Variable income is the investment that gives the highest profitability in the long term,” comments the expert.
The portfolio and investment fund manager at Afi Inversiones, Diego Mendoza, defends that “investment funds continue to be a very valid instrument, they are highly regulated and have very favorable tax treatment” without forgetting “pension plans, although they now have limited contributions, they would also be recommended as a long-term investment.”
Regarding the best time to start investing, Diego Mendoza's recommendation is to “start as soon as possible” since “the sooner you start, the less effort you will have to make to obtain the capital at the expected time than someone else who starts later.” . “If I'm going to invest in the long term, the sooner I start, the better,” says IEB professor Javier Niederleytner, who also remembers that “no matter how much the context changes, there will always be somewhere to invest.” “If you have objectives and a well-defined time horizon, it is always a good time to invest for the long term,” said the portfolio and investment fund manager at Afi Inversiones.
To organize the investment, the key is to “do it systematically,” according to Bestinver analyst Raquel Martínez Nistal. “You have to know how to organize income and expenses but also the investment, integrating it into that savings line,” she clarified. The expert recommends “not leaving all the money in a checking account at sight, because they will lose purchasing power, but rather putting a part of it as a short-term deposit to have liquidity and plan periodic transfers for long-term investment.” Furthermore, Diego Mendoza is also committed to this distribution since, in addition to achieving greater profitability, “not being able to touch the money is an advantage, so as not to be tempted to touch it. “Invest in a systematic way, putting emotions in a drawer, because in the long term the risk is diluted,” concluded Raquel Martínez Nistal.
