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Lessons From a Novice Stock Investor Who Has Been Successful
What I’ve learned in my five years of investing
Since 2015, I have grown my money at a compound annual growth rate (CAGR) of 34%. My $5,000 investment will increase to $1.7 million after 20 years.
Before dismissing my success as beginner’s luck in a bull market, note that I have outperformed both the S&P 500 — which gained 11.63% in the same period — and Warren Buffett’s 20.3% record since 1965.
Here are some important lessons I’ve learned along the way.
1. All roads lead to Rome
There is no foolproof strategy — they all have pros and cons. Don’t pay too much attention to those who claim their way is the only proven way to invest appropriately.
Investing is not a zero-sum game where only one strategy can be successful. Most methods have merits and will generally work given time. The adage still holds: “Time in the market is better than timing the market.”
Your job as a beginning investor is not to determine which approach is best overall, but to figure out which one suits you best. Don’t commit to a strategy that will keep you up all night with worry.
