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Investing in stocks is like driving a car. In the beginning, no one is an expert in driving. You have to learn how to drive. If you skip the learnings and get behind the steering wheel on the very first day, what would be the consequence? There is a decent chance that you would get into an accident. Similarly, with no prior knowledge, you are bound to lose money in the stock market. You might earn money occasionally, but that would be from luck. To earn consistently, you must have in depth knowledge in the subject. To avoid and accident, an experienced driver needs o drive carefully. Similarly, seasoned investors should also remain cautious about his investment decision to avoid lose. You can minimize chances of losing money in the stock market. Driving does not require any formal education degree. Similarly, an MBA in finance, CPA or a similar degree cannot ensure success in equity investing. Irrespective of education background and specialization, anyone can learn the tactics of successful investing. It is simple, but not easy. Simple in the sense that it doesn’t required high intellectual. Not easy because it requires years long practices, discipline, dedication and willingness to learn.
Avoiding equity investment means you are unlikely to beat inflation. Banks and post office deposits offer negative or flat return. Very few investment options, like real estate and equities, can offer above inflation return. Over the last few decades, across the globe and among all asset classes, equities have outperformed other investment options in the long run.
