Getting it Wrong Ain't That Bad

You know, a lot of people are afraid to invest in the share market (aka the stock market) because they are afraid of “getting it wrong”, of investing in the wrong stock. But is that really a bad thing? And how come the big boys always seem to get it right?

Let’s tackle the last question first: How come the big boys always seem to get it right?

They don’t! No, seriously, they often get it wrong. Let me show you.

Superannuation fund managers are major stock market investors. And depending upon their appetite for risk will depend on where and how much they invest in the stocks and shares on offer. But the reality is that they simply do NOT win every time. If they did, your superannuation balance would be growing astronomically, year on year.

The big players do, in fact, get it wrong; sometimes, spectacularly so.

Yes, there are others who have built massive empires on their success, but they are the first to admit that they didn’t always get it right; and that some of their failures really hurt.

You, as an individual, have almost the same playing field as the big players. You have access to markets around the world. You can research company information. Yes, it is true that the big players sometimes get some information before you do, and they have a boat-load more money to play with, but you have a serious luxury that they don’t: you have time. And you have the luxury to use that time.

The big players have pressures, KPIs, meetings, lunches, ROIs, long commutes.

You have YOU. And if you follow a sensible plan (like: Don’t put all your eggs in one basket; or: Don’t believe all the rubbish that people will throw at you, especially the well-meaning ones), then getting it wrong won’t be fatal.

This is NOT investment advice and you should always do your own research and learning.