Most New Investors Pick the Wrong Stocks First. Here’s What I’d Buy Instead.
I’ll be the first to say it’s all too easy for new investors to become overly excited about a particular stock. The market’s bullish buzz can paint it as a must-have name regardless of its price, or the underlying company’s realistic growth prospects.
A name like Space Exploration Technologies comes to mind. Indeed, you may have made your foray into the stock market because you had a shot at participating in its initial public offering (IPO). Or there’s Nvidia, which has drawn a massive amount of bullish attention since 2023 due to its role as the supplier of most of the computer processing tech at the heart of most AI data centers. The stock’s performed very well during this time frame.
The fact of the matter is, however, Nvidia is an exception rather than the norm. Plenty of seemingly similar revolutionary ideas never actually pan out. At the same time, when ChatGPT was launched in late 2022, few people fully understood just how quickly artificial intelligence would become as big as it is now. A bunch of new investors gambled on the wrong tickers and lost during this stretch, while a bunch of other people missed out on opportunities.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.