Barça is a great football club.
Let’s say you have a brilliant idea. You think they’re going to win Spain’s La Liga next year.
So you’re going to make a sports bet on Barça winning – and become a millionaire!
❌ Where’s the problem with this brilliant plan?
Well, Barça won La Liga 5 out of the past 10 years.
Everyone knows they have a great shot at winning again.
No bookie will give you great odds.
You won’t make big money betting on Barça.
That’s obvious, right?
But people miss this point when looking at stocks. 🤯
They think – oh, wow, Microsoft or Apple or Netflix is a great company.
I’m going to buy their stock and make a lot of money!
But that’s just betting on the winners.
Everyone knows these are great companies.
So their stocks are really expensive. 💸
And there’s no easy opportunity for big profit.
To be a great stock picker, it’s not enough to pick great companies.
You have to outsmart the bookies – in this case, other investors.
You have to find companies which have been mispriced by the market.
And that’s extremely difficult.
In fact, even professional investors find it hard. . .
. . . because the market is mostly professional investors competing against each other.
✨ So what’s the solution?
Don’t gamble.
Don’t play the game of picking individual stocks.
Just buy a good index fund or ETF. . .
and invest in the market as a whole.
Decades of research have demonstrated – index investing is likely to get you better results. . .
. . . with far less effort and stress!
P.S. Just in case it’s not clear, I don’t support gambling or sports betting. Invest your money instead!
