Okay-- this has a twist, so I think it merits its own.
The year is 1999 and everyone is promising the end of the world. You decide that its best to be an optimist so you are gonna pick some stocks. The thing is you don't know what you are doing so it goes something like this:
1. Hey Warren Buffet knows what he is doing I will buy Berkshire Hathaway B.
2. Damn this Coke is good. I think I will buy some of that its been around since WWII right?
3. Nope I switched to Pepsi so I will buy that.
4. I think I will buy UPS they are better than the Postal Service.
5. Hey Lowes looks busy I think I will buy them.
6. My kid watches a #$%^ load of Disney. How about some of that.
7. Hey how about this Amazon company. They are neat.
8. Im selling stuff on Ebay so why not own some.
9. Hershey bars rule so Im buying some of that.
10. Fed Ex is just as good as UPS so I will get some.
11. I shop at Fry's and will never stop so I will buy some Kroger.
12. Hey this Starbucks is really good and its busy all the time.
13. There is a Wellsfargo in every $%^%^ing grocery store!!
14. Dillards is classy so why not?
15. Hell with it Macy's too.
16. Everyone is buying a Toyota
17. and a Honda
18. Cabelas is cool.
Now if you bought all that and held it what would it look like? Well the S&P 500 is the really thick red line.
What what if you bought Apple?
My point is.. it only takes one of those to make up for 3 crappy ones. This is how a Janitor makes $8,000,000
1. never sell
2. never rebalance
3. buy what you know
4. don't put all your eggs in one basket
5. use Robinhood for zero commission.
6. one, two, three... Go Buffet!!