Many people start equity investing thinking it’s SO easy to get rich. They consider it a free lunch.
Equity carries risk and hence you get a higher return. in shorter time periods, risk looks absent completely and in some periods, risk looks more imminent.
Many fools jumped into equity investing thinking following a couple of Twitter handles, SMS & others using social media will make them tons of money. They forgot to ask “why me” when they were making money. Advises poured in each day into junks, hope stocks, and inflection points. I had even heard some idiot promising 35% CAGR. What is the cost an investor pays? They lost 30-40% of their hard-earned money.
Someone’s profit is someone’s loss. An aggregate investor can’t earn more than a market return. Given there are smart people on the street who deserve to earn disproportionately; plus brokers and advisors eat into your corpus, an aggregate investor doesn’t earn even market return. Hence an aggregate investor is a LOSER. At least start making average market returns first.
Everyone wants higher returns than the market.
They seldom ask “WHY WOULD I GET HIGH RETURN SITTING AT HOME WITHOUT ANY EXPERTISE OR EXPERIENCE?”
Why in the world will advisors make you high returns? won’t he charge you high fees for his expertise?
OR
Why does he run an advisory when he can earn such high returns for himself?