Last updated: July, 2023
Everyone says investing in stocks is one of the best ways to build wealth. Why do 90% of retail investors lose money, then?
I'm Alden — one of the co-founders of Moat. Moat is a platform designed to make you the best long-term investor you can be. I created this playbook to get you into the mindset of the best investors. Let's begin.
So many investing guides are full of fluff and are too abstract to be helpful. They tell you that investing in stocks is one of the best ways to build wealth, open a brokerage, invest in an index or a few blue chip stocks, and focus on the "long run." The guides that could be useful require you to know a lot or expect you to read and watch through hours of videos and books.
You don't come out of it knowing what companies to invest in, what price to buy, how to manage your emotions, and ultimately grow your wealth.
By the end of this guide, you will know value investing, how it works and why it's one of the most effective ways to grow your wealth.
How do you make money from stocks?
Recipe of a successful investment
"Investing allows you to do what you want, when you want, with who you want, for as long as you want. It is the highest dividend money pays." — Morgan Housel.
Retirement
We're poorer than previous generations and will not likely be able to save enough to retire comfortably. We have way more debt, homes are more expensive than ever, and inflation has not been this high since 1981.
Freedom
You'll never stop working for someone else if you don't own assets that make you money (companies, land, farms, etc.) Given enough time, the money you can generate from investing will far exceed what you can earn from a job.
Inflation
If you don't invest, you automatically get poorer over time as the cost of living rises. Even if you save a lot of money, it will eventually be worthless because of inflation. Why work 40+ hours a week to see your cash depreciate over time?