How to invest in stocks and outperform fund managers?

If we look at things very simply, there are 3 main options, how to invest in stock market:

1. Select stocks yourself

You can create a stock portfolio of companies that you believe in and hope that these companies will grow and make you rich. But to get good results over the long-term, you will also need to spend lot of time learning about stock market. If you don’t have time and will pick stocks without doing any research, you risk getting burned.

For example – this is how GoPro stock chart looked like after IPO – price shot up 300% from $30 to $90 in just 3 months. Imagine, how high it could go in 2 years? Let’s say, you would have invested $990 and bought 11 GoPro shares in Oct 2014, paying $90 for each share.

gopro_hype

Continue reading How to invest in stocks and outperform fund managers?

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