in case 2020 is not crazy enough in the stock market. At the beginning of 2021, it proved to be the sister of 2020, except for red hair and bangs.
As early as February, I had colleagues, friends and acquaintances contacted me and asked me about my plans to buy GameStop and AMC stocks.
“I don’t have any plans,” I replied.
They all looked surprised.
“I believe in investing, not gambling” is usually my standard response.
I hate breaking anyone’s bubble, but all meme stocks (or stocks that have skyrocketed) are just speculative, fashionable, and gambling—just like Dogecoin in the cryptocurrency world.
All the speculative “investments” and “trying to beat the market” last year reminded me of Warren Buffett’s bet more than ten years ago.
As early as 2007, Warren bet on hedge fund manager Ted Seides (Ted Seides), believing that Vanguard S&P 500 index funds will outperform a basket of hedge funds within 10 years.
Now, I know that young people on Reddit probably don’t plan to hold meme stocks for ten years, but when will you sell the stocks? When will you buy it? This is where the water becomes turbid.
Warren’s “market” bet is one of the most powerful investment lessons, and it’s a shame that we don’t talk about this with young investors.