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Expectations vs Reality
Time for a thread
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.
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.
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.
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.
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.
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.
Comment your best expectation vs reality related to investing.
