Quoted from Friengineer:
When's a time you doubled your money? Stock and why you picked it?
I recently read that if you start with $1000 and double it ten times, then you'll hit a cool mil.
I've passively doubled my $17000 ira over the last five years but I could have easily doubled it by picking three stocks: Microsoft, Nike, and Starbucks.
I've doubled a small amount on Starbucks, Snap, Xom, HRL.
Seems almost tantalizingly within reach, doesn’t it? Trouble is, that is ten *consecutive* doublings… a feat even Warren Buffett would be envious of today.
Microsoft, Nike, and Starbucks are three big winners for sure. But how many losers among them? A whole, whole lot. That’s why passive investing is so useful, if boring. By buying the basket, you’re guaranteed to capture the winners… and it is the winners who move the entire market. Miss one, and you’ll miss a big chunk of the momentum.
It’s like taking a cruise ship vs. riding on a wooden plank attached to an outboard motor. Sure, you’ll win the race if you’re crafty and lucky and no another boat capsizes you with their wake… but ten races in a row? Dang. Better have a bucket of Pepto-Bismol on the ready.
Still, it is a good idea to play with a smaller chunk of savings so one doesn’t get bored and feel like they’re missing out on all the fun.
Certainly better odds than playing the lottery, that’s for sure.