Smart people do not often repeat themselves, unless paid. The media is no exception. They talk and they’re paid. So, it’s your money, the media is talking, and often it’s about FAAG.
Sometimes the media conveys incredibly smart things. Sometimes the media simply stands and blinks repeatedly like some neon sign.
Confusion blocks progress. Investors and non-investors alike suffer confusion. What confusion? We at StockJaw feel that a general sense of being “overwhelmed” leads the list of confusing things which keep many people from investing in the market. We’re here to help.
The sheer number of stocks listed in our 3 indices is alone overwhelming. Ten thousand stocks trade on U.S. exchanges. That’s a lot of choices. How does one compare ten thousands stocks? One doesn’t. That’s the answer.
Myth; Stock investors must know intimately scads of stocks, hundreds, arm-loads of stocks. No. Scads of potential stock investors are stopped by precisely this misconception.
We’re looking for gains and gains are achieved by owning shares of market-leading companies, not obscure ones. Beating the weeds for stocks of companies few know or invest in is not the way to investing gains.
The best and brightest companies surround us. Image for demonstration purpose only.
Look to the industry-leading companies. Which are those? They are the ones innovating, disrupting, and transforming themselves, and their business. Most of these appear regularly in the media–if not dominate them. They grow and change and such is usually news-worthy.
Stock investing is about owning shares of good companies, at the right price, and staying the course through thick and thin. Investors, rather than traders, plan to hold for the long term–typically described as 18 months or longer. Investors plan to remain as long as the company’s “thesis,” or growth story, remains intact.
There are those who enjoy spouting off about their stock holdings, as though bathing in the glory of their own brilliance. O.K. Naming stocks few know of is often a part of this personal type of road show. Do such “investors” ever report back about their losses, failures, misses? Not normally. Such talk isn’t about investing. It’s about standing in reflected glory. No help here.
The newer one is to equity investing, the more important it is for them to choose the stocks well known companies. Such companies are routinely trafficked in the media, thus are much, much easier to track and thus know. Their strengths and weaknesses are widely known.
Everyday the market displays its’ leaders. They jump to the top of the advancer board regularly. That’s how they demonstrate to investors their worth. Such stocks, are not obscure or mysterious. Cramer’s FAAG acronym points to four such winners: Facebook, Amazon, Netflix, and Google, or Alphabet.
Wihspering about holding shares of FAAG, or other clear market-leaders, may or may not, impress friends, neighbors, or the mailman, but it will improve your financial position.
StockJaw
Images sourced from Pixabay.
https://pixabay.com/en/photos/
Additional resources:
https://www.schwab.com/public/schwab/client_home
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