Speculative mathematics in the stock market is dangerous
With the financial markets, patience is extremely important.
It is important to stay invested for at least ten years. A performance after one or two years says almost nothing.
The suggestion I made to my girlfriend is that she buy, keep and buy again.
With a monthly savings plan. Chances are it will weather wild stock market corrections. If I were him, I would leave everything for the long haul.
However, this is not a concrete investment recommendation, ultimately you have to decide for yourself and then live with the outcome.
Invest for 30 years, not 3 weeks
Investors of my generation use their cell phones to make lightning-fast buy and sell decisions. They get into IPOs (Initial Public Offerings), order cryptos, sometimes fall in love with scammers.
Currently, I am getting get-rich-quick trading offers on Instagram, Twitter, and Telegram. I just have to transfer my money to a dodgy broker in Ireland or USA or directly to the scammer.
Here’s how you can really build wealth:
- Do not be guided by euphoria or panic. The biggest mistakes are selling in a panic, investing too late (too old) and not diversifying enough.
- Act for the long term. For a young investor like me, it doesn’t matter what happens in the next ten years, what matters for young investors is where their portfolio will be in 30, 40, 50 years.
- Don’t let the headlines drive you crazy. Daily fluctuations play almost no role in 20s and 30s.
- You don’t have to buy the hottest stocks. And one more thing: no one has to watch the financial media or the portfolio every day. I’m not looking for stock tips on Tumblr, Reddit, Twitter, Instagram, or TikTok.
Take advantage of your business work and your secondary activity to create a third source of income
A corporate job can help build wealth.
It can become a turbo.
Especially if you start early. It was like that for me. You can lay the foundation for having more time to travel or becoming financially free.
For example, you can use your 9 to 5 job to pay for your lifestyle and Side hustle to create a third stream of income from passive investments.
I have 3 deposits
I split my savings into three accounts.
One is for late retirement, the other for early retirement. The third deposit is used to pay for my current lifestyle.
I let the three deposits grow like an old tree.
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