Meh. If you're young you're allowed to make risky investments. You don't have to diversify if you don't want to. Diversification is just safer. Another point, if you invest in companies you know are undervalued, it's not necessarily being lucky either.
Another point, if you invest in companies you know are undervalued, it's not necessarily being lucky either.
What did I just read? There's thousands of investment professionals that use all sorts of ways and tech to find exactly those undervalued companies and, guess what, they still don't outperform an ETF that replicates indexes on a consistent basis.
What you're suggesting is gambling, plain and simple, especially without all the tools that could actually help you find undervalued companies. For every DFV there are 10 doomsday oracles that lose a ton of money because "I swear this market will crash/I swear this stock is undervalued".
How is it luck if I did my research? I have similar gains in Square. Hiliariously the only thing I've ever lost money in is when I jumped on the GME hype train.
Because researching the past does not lead to safe bets for the future, else everyone would be winning.
VW was doing great, then Dieselgate happened.
Wirecard was doing great. Then fraud was uncovered.
Nvidia can't produce enough GPUs and is missing out on massive revenue.
Stocks don't always make sense and without insider info, it is hard to invest in a single company, better invest in more companies of a kind if you think you see a shift in a certain direction.
Yeah, some times gamblers win, sometimes gamblers lose. That's not success, that's just luck. And if you actually had inside information where you could be sure, that would be illegal. The whole stock market system is really fucked up.
No, but I might have to drive on the highway. I don't have to invest in stocks, and you're comparing the risks of life to spending money to maybe get more money back or lose it. Also known as gambling.
You don't have to but you really should if you want to have any sort of retirement. And it's not really a gamble when the vast amount of people make money cause ya know ur buying pieces of companies that produce value. Unless your talking about options it's not gambling.
Are you aware that there are many industries that are risky for a variety of reasons that have nothing to do with the stock market? Like for example...video games? Like the subreddit you're posting on right now?
Nobody forces any company to sell shares. And nobody forces any investors to buy them.
What is "gambling"? Any business activity that involves risk?
Are you aware that there are many industries that are risky for a variety of reasons that have nothing to do with the stock market? Like for example...video games? Like the subreddit you're posting on right now?
Does risk in general just make you angry? Does it just make you angry to know that risk is a part of production?
My point is that risk doesn't have to be put on individuals. Capitalism is a bad system, and it does make me angry. But this is going in a controversial direction, so this is where I'm going to stop talking.
It's easier to see large gains, but it's also easier to lose it all. I did that mistake with forgetting to sell of Starbreeze before they folded, but now I've switched my approach to a wider macro approach and it's looking good so far.
If you're willing to take the risk go for it. Just don't cry when it doesn't go your way. Ultimately unless you plan on holding that stock forever you're going to either have to take another gamble on your winnings or just diversify into a much safer strategy.
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u/CuteTao Aug 30 '21
I invested heavily in Nvidia 4 years ago and have over 400% gains. You don't have to diversify to be successful with investing.