Most would hear from parents, grandparents and friends that they or they know of someone who has lost a lot of money in the stock market. Many even went bankrupted.
Here is the interesting part: tell them to give you some real names of people who lost that much money. Most of them will quote your TV drama names.
Actual Fact: TV makes the stock market looks more dangerous than it is.
The danger of the stock market is the same as driving a vehicle on the road. Putting someone who never learned anything about driving behind the wheels definitely makes it a dangerous thing. Just like not knowing anything about investment and randomly putting your money into the stock market, it is equally dangerous.
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To prove that stock market investing is not risky, look at the chart below:
The S&P500 is an index for the US stock market.
From the 1950s to today, it is almost an upward only steady trend.
Have you ever wonder how can anyone ever lose money in such a scenario?
Ironically, people did lose money during this period because they tried to jump in and out, thinking they are Einstein and that they can predict when are the top and bottom.
Apparently, there is a reason why the turtle wins the race.
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The world's top and best investor, Warren Buffett's advise for the public regarding stock investments:
So, the next time someone tells you that investment is risky, show them the chart above that it is really hard to lose money in the stock market if you took the turtle route.
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