the stock market is stupid, I have yet to met anyone who has built a serious fortune purely with stock market investing. what is a serious fortune, assets that produce in excess of $20k per month passive or more with little tax burden. I know someone who took a company public. they made 3 million, 10 million and lost 1 million in the previous 3 years. They had a rented office, some inventory that was built from factories in china, and some office furniture. guess what investors valued the company at $500 million in the IPO. $23/share. 4 years later the stock was trading at $4/share. who made money.THE PEOPLE WHO WERE INSIDERS AND BOUGHT INTO THE COMPANY AHEAD OF TIME. those are the people that make money in the stock market. so you wanna invest in the stock market, Do you know the companies financials? do you know the management team? do you understand their plan for growth? How about their marketing strategy? Will they pay the CEO and board members lavish bonuses and give them stock options? I say if you know all that you might as well be the CEO of the company.
buying for appreciation is gambling. you are betting the value will go up after a certain time, you are betting there will be greater demand for your portion of ownership after you buy. you are betting you are timing it right and the value is going up. that is gambeling. Invest for cash flow! don't invest for appreciation.
