There is a ton of information about investing in equities, ranging from braindead Tik-Tok tier to deep academic research. It is an area I know a little, but not a lot, and as such, have stuck to largely index funds. Right now, all of our savings are going into Schwab’s S&P500, which is unfathonably cheap to buy and own, and so far, so good.
We haven’t lost everything, at least not yet.
The temptation to get active, I must admit, is real. I remember reading a report on SanDisk (SNDK) a year ago, and it seemed pretty persuasive. I didn’t do anything, and they’re up 1,500%+. $1000 invested would be worth $15k now. Tidy.
My mind tells me that there is no way I can beat the market, because ultimately, I’m just a guy sitting in Denver with a family and job, and no hidden knowledge that could give me an edge. My index fund approach works, so what’s the rush?
I guess the appeal, and why so many people are drawn in, is that there is a puzzle element to it. In the same way crosswords appeal to people, seeing equity markets as a challenge that allows you to test your intelligence, risk appetite, and decision making, and see real, tangible results.
I am chilling, for now, with my index funds.
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