It’s sad and slightly morbid and for that I’m sorry. But the lesson is valid. When it comes to investing, dead people have the right idea.
There’s a story that floats around Wall Street, and while it might just be a myth, the lesson it holds is priceless. According to the tale, the financial giant Fidelity once did a study to see what types of investors performed the best. The surprising result? The accounts with the highest returns were either dead or inactive. Dead investors are the best investors, but people who forget about their investments are a close second—they pretty much invest like dead people.
In other words, dead people did better in the stock market than living people, simply because they weren’t constantly tinkering with their investments like the rest of us. They weren’t trying to outsmart the market, react to every bit of news, or make changes based on their emotions. They just let time do the work.
1. Buy and Hold
Dead investors are the ultimate “buy and hold” practitioners. They stay the course, and you should too. Consistency is key, and dead people are—well—remarkably consistent.
If you invest a set amount regularly, regardless of market conditions, you’ll benefit from dollar-cost averaging and make the most of the market’s long-term growth. The S&P 500, for instance, has delivered inflation-adjusted returns of about 7% per year on average for the past 50 years. The trick? Keep putting your money in and let it grow.
2. Don’t Try to Time the Market
Time is your most valuable resource—and dead people know it better than anyone.
The market goes up and down, and no one can predict its moves. Instead of trying to pick the perfect entry or exit points, focus on getting invested and staying invested for the long haul. The cost of waiting for the perfect moment can be high. You’re missing out on the power of compounding and long-term growth.
3. Don’t Overthink It
Dead investors don’t overthink things—they aren’t capable of it! They simply buy, hold, and let time do the work.
The market rewards patience. Trying to constantly adjust your investments based on every bit of news or the latest hot tip is exhausting and often counterproductive. The more you fiddle with your investments, the more likely you are to make mistakes that cost you money. Instead, take a page from the dead investor playbook: put your money in, leave it alone, and let the market do what it does best—grow over time.
Be Like a Dead Investor
It might sound morbid, but dead people have something figured out when it comes to investing. They stay consistent, they don’t try to time the market, and they certainly don’t overthink things.
The stock market is a powerful tool for growing your wealth—but only if you give it the time it needs. Start investing early, stay the course, and remember: sometimes the best thing you can do is… nothing at all.
So, when you’re feeling nervous or tempted to make changes, just remember: be like the dead investors. Buy, hold, relax, and let time do its magic.
