The economy is not the stock market—events can simultaneously wreak havoc on the economy and turbocharge stocks. Which helps explain why stocks keep going up, despite the ongoing recession and looming tax hikes.
Eight years ago, a little-known company called Peloton needed an investor. The founder asked a friend to invest $25,000. Now that friend has 9 million dollars—all because he had the cash to do it, zero debt, and the willingness to take the risk.
The only big company that’s been allowed to fail recently is Lehman Brothers. Big problem for the Lehman exec with $25 million in company stock… it all went to zero. If you own a lot of stock in the company where you work, you face a similar risk (probably on a smaller scale). Jared explains...
The first time you hear about something, you should buy it. “Invest, then investigate.” If you wait to research a stock, you’ll never get around to it. And you may end up saying the three most dangerous words in the English language: I missed it.
Discount brokerages are offering fractional shares to people. So, you can buy $5 worth of Amazon now, which is absolutely pointless. If you’re only investing $5 in stocks, you should not be investing in stocks—you should be investing in lunch.