Sunday, July 23, 2023

On The Basics (Of Investing)

 Here is my expectation for all future Primary School and Secondary School Graduates:

All children with a minimum education should be able to point to the place on the below graph where the most people borrowed the most money to purchase shares with the most confidence that the price would increase.



Any twelve year old, should be able to walk up to this graph and point.


And if you ask those children "what did the graph look like to most people when they were buying?" the child should be able to fold, or cover the graph so it looks like this:


Now if it was on a touch screen, a kid could zoom in, because if you look up the share price of any company on google, the scale and positioning of today's price won't indicate it's future downward trajectory (Should that happen).

The basic lesson is then, that we should learn that excitement and enthusiasm are contagious, much more so than understanding which takes work. Kids should grow into adults that realize that their brain can get hijacked by greed and fear. 

Elementary.

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