Investment realities: long-term strategy. The stock market often rewards early adopters, popularizing the notion of gaining from liking something before it becomes mainstream. However, this perception doesn’t wholly define investment and the stock market. Market fluctuations, shifting between red and green, create the notion of buying low (before trends) and selling high (during popularity). This approach is termed trading, a challenging endeavor distinct from investing.
Essence of Investing
- Long-term focus: It disregards trends and acknowledges volatility; ultimately, assets tend to rise over time.
- Diversification: Avoid putting everything into one investment, as a single loss can be detrimental. Exchange-Traded Funds (ETFs) mitigate risk by bundling various stocks. For instance, the CAC40 ETF mirrors France’s top 40 companies, while an MSCI World ETF diversifies globally.
- Reliability: Contrary to get-rich-quick schemes, investing ensures a secure future, enabling aspirations like financial freedom or unconventional purchases, such as a €400,000 Pokémon Card.
Overcoming Fear of Missing Out (FOMO)
Despite the Fear of Missing Out (FOMO) during events like the 2020 market dip or the rise of cryptocurrencies, succumbing to FOMO shouldn’t deter investment.
Short-term Challenges vs. Long-term Impact
Starting at a market peak (as in my case in November 2021) matters in the short term with investments in the red. However, the long-term impact is significant; time becomes the leveraging force rather than timing the market. The article “What if I invest right before a market crash?” demonstrates that perfect timing yields similar returns to the worst possible timing in the long run. Avoid distractions of perfect timing, trends, or FOMO (consider how Blackberry lost its allure). Market crashes are followed by recoveries and growth; the first shouldn’t hinder the potential of the second.
Statistical Confidence in Investing
Investment realities: long-term strategy. Statistically, the likelihood of profiting while investing increases over time: 66.1% over 65 days, 72.7% in a year, and 94.2% over ten years. Allow a clear, long-term plan to guide decisions, minimizing the influence of hype, and potentially shielding from future FOMO-induced impulses.
Starting in May 2022, I took to LinkedIn for content creation, and my journey began humbly. The true turning point was discovering ChatGPT, which transformed my online presence. Introducing it to my followers, I saw my reach explode from a modest 50k impressions to a staggering 1.5 million views. Embracing my newfound role, I became a connector between people and the potential of AI.
Fast-forward to today: I've impacted over 50 million people, ushered +20,000 students into the AI world, and sold in excess of 1,000 courses on rubenhassid.ai/courses. Gratefully recognized as the 2nd top content creator on LinkedIn by Favikon, I've also had the privilege to collaborate with renowned brands like Notion, Tribescaler, and others.
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