Investors get lessons, not profits, from GameStop frenzy
Over the past few weeks the world watched as individual wall street investors rushed to buy shares in the struggling video. Game retail chain game stop. It was sold as a chance to punish wall street. Deletes especially those who bet that companies will fail. This is called shorting game stops share values. Climb to dizzying heights and then fell again. Virtually all of those market games evaporated washington post personal finance columnist. Michelle single terry talked about that. With no king. So a lot of newer investors younger investors are fascinated by the story of game stop stock and it has led some of them to get involved to put their money into the market for the first time that on its face is not necessarily a bad thing young people investing. But you have some concerns. What are those you know. I'm not a big fan of using investing like a game and what's happening with is really speculation is not the tried and true way that the average person who's like saving for retirement for example creates well for themselves. They do it. Slow and steady over decades really and with diversification often through mutual funds low index mutual funds. And so. i know that's not a sexy or exciting story for the children or young adults but the reality of it is that that's how they should be investing the mistakes that small investors are making when they jump into the market and scoop up a hot stock or get involved with something like game stop. What are the pitfalls that you see so the analogy that i use that. I think that they will identify with this. It's like when you go to las vegas casino and there are people who are winning. You hear the bells go off in the slot machines like yeah. That could be me. But that's not not like a casino. Sure they're gonna be winner. Sure you're gonna read the news stories about someone who invested gang stock in paid off the student loan debt but for everyone of that person. There are so many more who are going to lose money. They're going to invest money. Did they can't afford to lose and they're going to walk away. Not the better for your recent column. You spoke to an expert. Who made what would appear to be a very boring suggestion. But she claims it is not christine. Benz says buy some shares in a low cost s and p five hundred index fund. And you the buyer. We'll see that you are a part owner of what. So you're part of apple net flicks tessler all the major companies that. You're very familiar with the exciting ones. You know amazon. The problem is that when you buy a mutual fund you don't see the guts of it you know it's like putting together a stew and you got all the tomatoes and carrots and all that kind of stuff you're eating is great but then this though but when you look at the pot and you see it all you like carrots and there is beefing there. That's what an index fund. When i'm talking about the stock market and investing in and having money for your future i don't look at what the news is hyping. That's like the casino. Why when you hit it at a slot machine. Does the bell go off. Why would i want to let someone else know that. I've made money because they want to. They want other people to think they can win too. But we all know that the house always wins but the regular people who are not in the casinos. Who are he just walking on the strip and enjoying the you know as long as vegas without the gambling. They're investing in what people consider boring. But bahrain can make you a millionaire.