Investing.

Expectations vs Reality

Time for a thread

1/ "It's a way to get rich quick."

Reality:

The secret is using time to compound returns.

The market can make you wealthy…

But it likely won’t happen overnight.

2/ "Buying stocks “on sale” means you are getting a better deal."

Reality: Not always...

- Businesses change
- CEO’s come and go
- Tech advances forward
- Lawsuits happen
- Etc, etc, etc.

Sometimes cheap is cheap for a reason.

3/ "Penny stocks will make you rich."

Reality:

Penny stocks are one of the fastest ways to go broke.

You don’t need to take massive risks for high returns.

4/ “On the next pullback I’m buying in.”

Reality:

When it happens many still find themselves hesitant.

If you see value, don’t wait.

Good businesses will find a way to win.

5/ Stocks only go up.

Reality:

While in the past the overall market has gone up over a long period of time this could always change.

Index fund and ETF investing is proven,

But nothing requires it to do the same again.

6/ Many more of these exist.

Comment your best expectation vs reality related to investing.