The power of long‑term investing: Lessons from three everyday investors

1. “Start early and make compound interest your ally."

Investing has never been about getting rich quick for Luke Irwin – it’s about securing peace of mind. “I didn’t want to worry about financial security in my later years,” says the Brisbane-based veteran. “Realising I wanted a larger balance to draw upon outside of just my super is what got me started.”

Luke’s initial move was highly strategic: upon joining the navy, he immediately increased his super contributions to the maximum level, capitalising on government co-contributions to enjoy a 20 per cent super rate for seven years.

Luke has chipped away at another goal – to have an additional $500,000 on top of that super available to him at retirement – by a strategy of passive investing. “I used to try to invest in individual companies,” he says. “But after a few years I realised I wasn’t smarter than analysts at the varying funds and that I should go with a straightforward, moderate-growth, lower-risk approach.”

These days, he leaves his investments alone. “I’m in it for the long haul. There will be ups and downs but overall I think an index-linked fund is more stable and tracks the market. I’ll keep putting money into the investment account as it becomes available to keep growing the capital base, getting me closer to having a nice bonus on retirement. I know I’ll have to work until I’m 67 and I’m okay with that. I just want the time after that to be easy and not have a concern about living costs.”

Biggest lesson:

“When I got back from the Gulf in 2002, I had a great nest egg saved up as I hadn’t really had an opportunity to spend anything for six months,” he says. “In hindsight, I should have bought a house or invested earlier. Instead, I had a really fun few months... lessons were learnt and while fun at the time, I do look back and regret the decision now.”

2. “Time in the market beats timing the market every time.”

“I’ve always been fascinated by how businesses grow,” says Lel Smits, a Sydney-based business manager. “Investing felt like a natural extension of that curiosity and a great way to participate in the stories shaping the economy rather than just watching from the sidelines.”

Preferring a more hands-on approach, driven by research and opportunity, Lel’s overarching goal is long-term wealth creation and financial independence. “I primarily invest in stocks – a mix of ASX-listed and global growth companies,” she explains. “I also keep some exposure to ETFs for diversification and occasionally participate in early-stage or pre-IPO opportunities where I see strong fundamentals and leadership.”

Immersing herself in learning has been something that has strengthened Lel’s confidence over the years – though she takes a broader approach to keeping track of her investments. “I check in regularly but try not to overreact to short-term movements. I read daily company news updates from the ASX, read finance news and participate in share market conferences and events to immerse myself in the ever-changing investing landscape.”

Biggest lesson:

“Time in the market truly beats timing the market. Also, emotion, not logic, is often the hardest factor to manage. And that consistency and patience matter far more than trying to find the ‘perfect’ stock.”

3. “Invest in what you know and know what you’re investing in.”

A deep curiosity about the mechanics of business is what propelled Sydney-based consumer consultant Ian McCrea into the world of shares. “My mother talked about money, investing and real estate a lot,” he recalls. Realising early on that he would need to work and save to achieve the independence he craved, Ian found an intellectual parallel in the market. “Investing and business for me is like following sports for others,” he says. “It’s fascinating – why some businesses succeed where others don’t is endlessly interesting to me.”

For Ian, choosing stocks and investments he already has an understanding of has yielded some of the best results and he’s been able to use his business background to his advantage.

His advice for those starting out? “You need to start – and keep – a saver’s mindset to accumulate something to invest,” says Ian. “I was lucky to have this instinct early. Then later, the returns exceed what you can save.” Ian tries to invest only when he finds something that he understands and that seems reasonably priced. “I was a successful footwear retailer. First it was my own shop then building stores and managing groups of stores for others. So retail stocks are easier for me and have given me my best results.”

Biggest lesson:

The errors have been crucial to the process of investing. “Mistakes make you learn and improve,” he says. “The wrong goals or comparing yourself to others can lead to bad mistakes. Don’t use debt in the share market. I never did but I’ve seen smart people wiped out that way.”

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Published: 18 March 2026