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Invest in Stocks Long Term and Go Broke

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Uploaded by on Jul 5, 2009

Almost 100% of companies go bankrupt over time. You must learn value investing or If you invest in individual stocks long term you will go broke.

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  • likes, 6 dislikes

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Uploader Comments (MrAlanKendall)

  • Well how often do you see people "investing" their retirement money into stocks in start-ups? Or how often do mutual funds invest in such companies? Never. So the comparison that most start-ups go bankrupt is not relevant. Furthermore, you should analyze how many of the companies that have been on the S&P 500 that have gone bankrupt. Ever. The answer is closer to 0,0001% than your claimed "99.999%".

  • @hausse37

    Investing in the index fun sp500 is just fine but investing in RANDOM stocks over time, you have a 99.999% chance of losing all because more and more companies go bankrupt over time. The sp500 is safe because losers are taking out periodically.

  • This is very true.  Even the DJIA has had many companies such as GM, Citigroup, etc etc.. (those are just recently) and they are removed from the DJIA. If they were kept in the DJIA would be much much lower. Most companies run into problems and that isn't reflected in the indexes because they are adjusted. Good point.

  • Warren Buffett says that it is OK to invest in the SP 500 index (spy) or the DJIA index (DIA) because you will never lose money. It is obvious to me that only the top 500 companies stay in the sp500 but weaker companies drop out.

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  • stfu pal your vids are garbage and if u knew what u were talking about you wouldnt be on youtube telling people whats up stfu

  • Yes, the object of investing is not buying and holding, but buying and holding until the stock becomes fairly valued or reaches one's target price -- whichever comes first.

    By the way, Mary Buffet's book is a HORRIBLE book on value investing!

    She doesn't know what the crap she's talking about.

    She's only using her married name to sell her book.

  • I buy and hold until my stocks become fully valued or reaches my target price, and then I sell.

  • This dude seems to have some mental issues...

  • @online4now Yes you are right. I never took that into consideration. The Dow Jones isn't necessarily a good measure of the economy because it may be high in price but if the selection of stocks it is representing changes due to factors such as bankruptcy, then it is misleading. Index funds are critical these days.

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