Long-term investments refer to assets that are held for an extended period, typically more than five years. These investments can include stocks, bonds, real estate, and mutual funds. The goal is to grow wealth over time, benefiting from compounding returns and market appreciation. Investors often choose long-term investments to ride out market fluctuations and reduce the impact of short-term volatility. By focusing on the long term, individuals can potentially achieve higher returns compared to short-term trading strategies, which may involve higher risks and costs.