Why listening to Investment guru is pointless and harmful
Investing is easy. I am convinced of this. This opinion was formed from personal and other people's experience and banal logic. Now I will prove it and give a couple of examples.
You do not need to be seven inches in the forehead to invest. If you get to the stock exchange building, that's enough. - Warren Buffett (c)
Example №1
Monkey Lukeria has earned more private large funds. She just randomly chose stocks and over the ten years from 2008 to 2018, the value of the monkey's securities increased 7.5 times, and the portfolio of investor gurus only 5.1 times.
Example №2
Warren Buffett has publicly stated that he is willing to wager that no professional investor in 10 years will outperform one fund of his choice on the S&P 500 index, taking into account all commissions and fees. He chose Vangaurd. Only the investment company Protege Partners, represented by Ted Seids, responded to the dispute. Others apparently understood that this was simply impossible. Their goal is not to make money in the stock markets, but to earn on the commissions and costs of their clients.
The result of the dispute: the S&P 500 index earned two more than the 5 funds selected by Protege Partners.
Example №3
Abbot secretary Grace Groener bought 3 shares of the company in 1935 for $ 180 and reinvested all dividends. With them, she again bought Abbot shares and over 75 years, $ 180 turned into $ 7.2 million. Time and compound interest did everything for her.
The goal of all gurus of investors and traders is to make money from you. All banks, funds, their managers are not friends. See the promise of great returns - run!
Advertising on the Internet: "Me and my mentees earn more than 300% per month on the stock market. Join my private club just today!" After what I saw, I have a question: if you earn 3600% per year (300 * 12 = 3600, that is, having 1 million, I will raise 3.6 billion). And this person sells a subscription to the group for 3-5 thousand rubles. We see this - we run without looking back!
Brokers and experts give predictions for buying and selling shares in order to earn on commissions from transactions. Everything! They are not interested if the client is not making deals. Money doesn't drip. They cannot know where the price of the dollar or oil will go. It's like visiting a fortune teller or a casino. The result is the same.
Investing in yourself is good. Self-education is great. There are many excellent books and articles on the topic of investment. But 99.9% is information noise from which it is necessary to get rid of.
Yours, Stockpickr!
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