My plan to get rich slowly in a Stocks and Shares ISA

History tells us that the longer you invest in the stock market, the more chances you have of consistent returns. And the longer I produce consistently, the richer I will become. This is the hallmark of long-term Foolish investing. With that in mind, here are three ways I invest in my Stocks and Shares ISA.

Diversify, diversify, diversify

Along with patience (see below), I think diversification is a key element in a strategy to build wealth over time. That’s because I can suspect the stock will perform strongly in the next few years, but ultimately I don’t know. And I don’t believe anyone else doesn’t.

Investors can make the right call one year, then get it wrong. As noted investor Howard Marks stated: “You can’t predict, but you can prepare“.

I think continuing to build a diversified portfolio is the perfect way to prepare for whatever comes your way. This thinking has led me recently to invest in a sector that has been neglected for a long time.

One example is the defense sector, which is attracting the attention of investors due to increasing defense budgets globally. I have added two BAE system and electronic warfare specialist Chemring Group to my ISA portfolio.

And I’m also paying serious attention to the UK house building sector for the first time. This is an area that has not done well, as interest rates have risen and house prices have fallen. Many home building stocks fell between 25% and 50% last year.

But despite the risks associated with an economic downturn, I think there may be opportunities here. The UK is experiencing a shortage of new housing supply, and I don’t see that changing.

More ammunition

Another way to prepare is to have cash sitting in an ISA, just waiting. That’s because opportunities often arise out of nowhere.

Who would have predicted that Covid would lead to one of the worst stock market crashes in history – followed by one of the biggest bounce rallies?

Luckily, I had the money at the time and got a really good deal when the market crashed. But I want to have more capital to work with. So, I plan to have more cash on hand in the ISA, to fully capitalize on any sudden opportunity that arises.

patient

Ultimately, it takes time to get rich from investing in the stock market. That’s why legendary investor Warren Buffett has famously returned more than 90% of his wealth since the age of 65. His investment career is a masterclass in the power of compound interest.

Buffett was once asked what he thought was the biggest mistake people make when it comes to money. He sent the following words: “Well, I think my biggest mistake was not learning how to save properly. Because saving is a habit. Then, try to get rich quick. It is quite easy to get good-to-do slowly. But it’s not easy to get rich quick“.

I may not be able to influence the ups and downs of the stock market. And I certainly cannot control interest rates and other macroeconomic events. But I can save and I can learn to be a patient investor. Things I control.