Whenever I see people amped about buying NVDIA stock I want to scream “YOU’RE CHASING PAST PERFORMANCE”. NVDIA stock has gone up over 28,000% over the last 10 years. Does that mean its going to go up another 28,000% over the next 10 years? I can virtually guarantee you the answer is no. That would put it’s value at about $850 trillion. The current biggest company in the world is Apple with a market cap of about $3.5 trillion.

“Chasing past performance” means you’re wooed by a stock, sector, or even country doing really well recently. It’s temping to conclude “oh, that must be the best performing stock/sector/country therefore I should buy it now.” NO! You’re too late. The time to get those gains you’re seeing was in the past. Going FORWARD you want to buy the thing that is CURRENTLY cheap that will be worth a lot in the future!

Ok, so what is currently cheap that will be worth a lot in the future. I know the answer and I’m going to tell you. It’s an answer most influencers don’t want you to hear and won’t admit to. But here’s the answer: I HAVE NO IDEA. Neither does anyone else. Anyone who tells you they do know is full of 💩.

So what do you do then? I’ll tell you that too! You buy ALL the stocks. As Jack Bogle said, “Don’t look for the needle in the haystack. Just buy the haystack.” Instead of trying to guess which stock will go up a lot in the future, buy ALL the stocks. You do that inside an index fund. Buy early. Buy often. Buy and hold forever. Keep acquiring more shares and let compound growth make you rich. Block out the noise of the hot stock tips you see from the squawking pundits on the financial channels. That’s how to get rich.

As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.

-Jeremy