Have you ever looked at the stock market's performance for the year and then glanced at your own portfolio, wondering why your numbers don't quite match up? It’s a common experience for anyone involved in . The market might be up 7 percent, but your account doesn't reflect that full gain. The reason is surprisingly simple, yet it's something the financial industry doesn't spend much time highlighting.
How do you get ahead in the world of investing? The answer is surprisingly simple: buy a slice of every business in the United States and then just hold on to it. This straightforward concept is the key to winning a game that most other investors are almost guaranteed to lose. For anyone exploring , it’s important not to mistake simplicity for a lack of sophistication. It’s a principle that has stood the test of time.
There's a fundamental truth at the heart of that many people miss, but it's the key to long-term success. Warren Buffett put it best when he explained that what owners can earn, in total, is limited to what their businesses earn in total. Think about it: over time, the combined gains of a company's shareholders can't magically exceed the actual business gains of the company itself.
Before you dive into complex strategies or even simple concepts like index funds, it’s crucial to understand the game you’re playing. , really? At its core, it's about owning a piece of a business. To make sense of the noise surrounding , let's borrow a simple story, a version of a parable once told by Warren Buffett.
My day job is all about taking risks. As a venture capitalist at my firm, Social Leverage, my partners and I invest in seed-stage software companies, with my personal focus being on financial technology. You might recognize some of our early investments, like Robinhood, eToro, and Ycharts. This background, along with co-founding StockTwits, probably makes it clear why I favor individual stocks over index funds when it comes to .
It’s one thing to give financial advice, but it’s another to live by it. The way we handle our own money is often a reflection of our earliest experiences, biggest lessons, and personal values. Here’s a look at how two financial professionals, Nina O’Neal and Debbie Freeman, manage their own investments, shaped by their unique life stories.
I was listening to the financial news the other morning, and the commentators were all focused on Google. Since the start of the year, the stock had been all over the place, with frequent gaps and high volatility. The steady, organized climb it had enjoyed for years was starting to look more like the chaotic distribution phase you see after a bubble bursts.
People often ask where I find my investment ideas, assuming they’re some rare commodity. The truth is actually the opposite. After more than twenty-five years of hunting for good investments, my challenge isn’t finding ideas—it’s sorting through them. But I remember starting out and asking the same question you might be asking now: Where do I even begin?
To be successful with , you have to know what a business is worth. But what if the old rulebook for valuing companies is broken?