This guide is for those who believe in that the stock market isn’t an ongoing money-making generator. That after a bearish market, we can’t always count on a long and profitable bull market.
Understand that many retail investors overlook this fact. That nothing in the stock market is set in stone. We can make short term bets over a day. We can make a swing trade over a few weeks or a couple months. Or we can play the long-term game for many years ahead. But never should we neglect re-searching thoroughly before we decide. What stock you invest in and when, obviously is the most important decision.
The media speaks of stocks almost nonstop and recommend some of them to us. But it’s up to you to decide, if the recommended companies are well-managed and well-run companies and if they fit into your investing style.
Never underestimate re-search, as re-searching a company thoroughly is the epitome for great success as a stock investor. Many retail investors have made fortunes when they invested in the best companies in the world. Long before those companies became enormous enterprises.
On the other hand. I don’t recommend that you invest in every other micro-cap IPO out there, as such stocks are like buying lottery tickets. Out of every one of them that succeeds, there’s at least a 100 of them that eventually goes belly up. But if you find a small cap stock trending upward for least 4-5 years. Consider analyzing them to find out if they meet your criteria for a great company.
The key as a stock investor, it is to know what makes a great company and search for such company. And keep in mind that truly few stocks are the next Netflix, Microsoft and Oracle. Those were one’s small-cap stocks that has grown into enormous giants. If you can find one such stock to invest in early and you then can get very wealthy.
Warren Buffett has made a fortune from shares in Wells Fargo!