I wonder what the real hype is over having a big investment portfolio. I'm not talking about just simply a giant mix of assets, but a big 💰💰💰 portfolio -- purely the overall worth of it.
I have seen people who talk about how they've managed to create $5,000,000.00+ portfolios over 20 or so years of putting money in to the market -- and most of it consists of the riskier stuff (like stocks).
My basic wondering is, what's the value/benefit of having so much money in the market? Because....
1.High-volatile assets change in value a lot -- they grow and shrink -- every hour of every day. In such a case, that multi-million dollar portfolio or so can become 100K only. In short, the value changes, so you can only average or find the median of your assets. For example, if I buy one share of GOOGLE now for $830, I could have $860 within the end of tonight -- totally possible and maybe even likely.
2.Bigger total value invested doesn't equate to bigger nor faster returns. If I were to try trading in place of investing, I could turn a quick, $830 GOOGLE share and get 100% back and some profit, simply if I sell it and clear the smallest difference back from its market value the minute it goes up to, say, $850. In this case I've made bigger returns in shorter times, but my portfolio was super tiny in comparison.
3.If the money has low-returns, it's the exact same thing, almost, as just keeping the money. For example, if I were to invest $1,000.00 in gold to have $1,000.00 worth of gold, it's no different than keeping $1,000.00 in cash -- except for maybe the lack of potential growth and inflation losses. Then again, the value can go down, which means I could've had more money should I not invest at all.
Plenty of people pour everything they can into the market, including dividend re-investing and such. The goal is to create a bigger and bigger, mixed, and highly-valued set of an overall portfolio.
How is this a beneficial thing, for the reasons I gave above?