Am I dumb or is investing into Stock actually really simple?

[Kaneki05]

I mean all you do is invest a little into leading brands and your likely to gain profit as they naturally grow?
And investing into a small niche cheap thing is kinda pointless?
Does that really sum it up.

[Oliverlogan263]

Yeah man investing in stocks really isn't that complicated. All you gotta do is pick some big well-known companies that make decent products and will probably be around for a long time. Like everyone uses iPhones and PlayStation, so Apple and Sony stocks are always a safe bet to make a bit of money over time.

And you're right, trying to find some small niche company is just too risky. Stick with the brands everyone already knows and uses. As long as the economy doesn't totally crash, those big companies will keep growing and your stocks will go up in value too.

You don't need to stress about trying to time the market or anything either. Just put a few bucks in each paycheck and forget about it for years. By the time you're my age you'll have a nice chunk of change saved up. Sure beats leaving money in the bank making no interest! Just don't go crazy and bet the farm, start small and learn as you go.

[Kaneki05]

Well saving in a ISA is good but yeah I am looking at stocks too. I really missed out on the Nvdia boat that was 40 for a stock back in 2018-19 now 1,400. So I know some risk is worth taking but yeah seems easy also just focusing on what won't be a risk.

[Oliverlogan263]

Wow, man that's crazy about Nvidia! I definitely would've been annoyed if I missed out on a stock growing that much too. Investing does seem like it could pay off big time if you pick the right companies. An ISA is definitely a solid safe option too though, so you're doing the smart thing saving some that way just in case.

With stocks it does seem like focusing on big steady brands that aren't gonna disappear overnight is the way to minimize risk, like you said. Maybe start small by researching companies you know are leaders in their industry, see how they've performed over the past few years, check analyst reviews, that kind of thing. Then you can put a little here and there to try growing it without stressing if one does have a down quarter.

And even with reduced risk ones, don't put all your eggs in one basket just in case. Diversifying across a few different industries could help balance it out too. You're smart to look into this now while you're young - if you can learn the ropes and find some winners, that money could seriously add up big time by the time we're older! Just don't get too greedy hoping for another Nvidia, haha. Let me know if any other questions come up, I'll try help how I can.

[Curmudgeon]

That is the "get rich slowly" approach to stock investing:

1. Buy "blue chip" stocks that pay good (or at least reasonable) dividends, and that have Dividend Re-Investment Plans (DRIPs), paying in a little bit of money each month or year or what have you, known as "dollar cost averaging"
2. Use dividends to buy more shares,
3. "Lather, Rinse, Repeat" (as the shampoo people would say), until you are old.

"Volatile Technology stocks come and volatile technology stocks go, but people will always need food and soap and cleaners and toilet paper." - (Not sure which financial person said this, but you get the idea).

There are NO guarantees that we do not have a market crash or some other awful situation, but the time-tested track record of this approach is pretty phenomenal.

[DrPepper12]

No no no!!! Mutual funds, not individual stocks!!! Diversification is the key. Risk. Regions. Sectors. Invest in index funds that diversify.

[Kaneki05]

Diversifying into many things is more risky though. Stocks into something that's basically impossible to go away within years upon years seems smarter. Like Amazon ain't going anywhere and will only be worth more in the future surely.

Sadly I missed out on Nvidia if I bought into when it came onto the scene back in 2018 more 2019 I would of won big as that went from 40 per stock to now 1,400. So taking a risk on something smaller at the time is good but a lot stuff will also fail.