It’s really easy to get caught up in the hype. You hear stories about how someone his hitting it big with this new strategy. It FEELS like you should be able to figure out how to do it too! But so often, by the time you hear about the hype, the moment has passed. The one guy who struck it rich is akin to a lottery winner. Good for him, but not something you should aspire to.
What you really need to know is what is the NEXT stock to hit it big, before you hear about the hype. And want to know what stock that is going to be? Well, I have no idea. No on really does.
But as Jack Bogle said, “Don’t look for the needle in the haystack. Just buy the haystack.” What he meant is that since we can’t know in advance which stock is going to be the next Amazon, Tesla, GameStop, whatever. You just buy EVERY stock and guarantee yourself your fair share of the growth of ALL those companies.
How do you do that? By buying and holding index funds, of course! My portfolio is quietly up about $84,000 since the beginning of the year. No headlines, no hype, just a modest 3% gain. A part of the slow march that has averaged 10% annual returns for the last 100 years.
As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.