“Chris, I wish I found you earlier, before all my losses”.
“Chris, I made all the mistakes you warn us about”.
“Chris, I foolishly bought all those stocks you say to stay away from, I’m only up 1% in over 8 years of trying”.
Nothing of value comes freely. If it’s worth something then you’ll probably have to work for it. From time to time you might get away with winging it, but it’s rare. It’s not a strategy that can be relied upon over time.
That’s why so many investors around the world get their arses bitten on the markets.
They open an account with a broker, and confronted with the decision of which stocks to buy and therefore invest in, they have no idea.
When you have no way to distinguish what’s good and what’s bad the only recourse is to stick to what you know. Which for most amateurs is nothing other than face value perception.
“I put everything into BP, because they make billions and there’s load of money in oil”.
They do make billions, but they also have to spend the same amount of billions in order to make it. In fact, the share price is around the same level as 20 years ago. They are not a growth stock.
“I have Royal Mail shares, because there’ll always be a postie knocking on my door each day”.
They said that about the Unigate milkman in the 90’s. Royal Mail don’t make profit most years, so how will they ever grow as a business if there’s no money to pump back in? And how do they grow that business anyway?
“I bought Tesco shares, but they don’t seem to have gone anywhere in the last 10 years”.
A good year for Tesco is a 2% profit margin. But most years they breakeven or make a loss. They carry too much debt and don’t have the capital to invest and grow much larger than they are. This is why their share price hasn’t budged past £2.50, nor is it ever likely to.
Bottom line…. the uninformed investor will never win. They’ll waste money, but more importantly, they’ll waste time. Money you can make back. But lose 10 years of compounded growth and you’ll never get that back.
The very idea is horrific to me. I’m already gutted that it took me until 35 to master this. I lost 15 good years that i’ll never get back.
Don’t buy the wrong stocks. It’ll take you 10 years to realise the damage done.
If you want to ensure you’re not wasting your time, come and speak to me directly at firstname.lastname@example.org