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286 votes
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Why isn't everybody rich?

In my opinion, the ability to have wealth comes down to one thing: Behavior. For many, it is a tough pill to swallow, but once a person realizes that they have control over their financial future ...
Pete B.'s user avatar
  • 76.7k
271 votes

Why isn't everybody rich?

It all comes down to 2 things: Financial illiteracy Insufficient initial capital For the first point, a very low number of people even possess basic knowledge of finance. If you don't know any ...
Leon's user avatar
  • 4,107
261 votes

Investment strategy for Google: What did I do wrong?

This is clearly not the answer you’re looking for, but you went wrong by trying to pick stocks and time the market. It’s been shown to be a fool’s game. Furthermore: if you picked several stocks, ...
Alex's user avatar
  • 1,399
152 votes

Why isn't everybody rich?

Because you have to be rich to get rich! Let's set up a model calculation. (don´t get hung up on these numbers - do your own calculations with your own goals and premises!) I define be rich as owning ...
Daniel's user avatar
  • 5,316
135 votes
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When selling stocks at a stop-loss price during a crash, who do I actually sell them to?

In addition to what others already wrote: Be sure to understand what a STOP-LOSS order really does: it does not stop your loss for sure, but tries to do so. What happens when the stock trades the ...
Aganju's user avatar
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117 votes
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Can a company block a specific person from buying its stock?

I assume you are talking about a publicly traded company listed on a major stock exchange and the buyer resides in the US. (Private companies and non-US locations can change the rules really a lot.) ...
zeta-band's user avatar
  • 3,997
116 votes

Why isn't everybody rich?

Because “rich” is a result of an uneven distribution of wealth. Last I researched, the total US wealth divided by the total population resulted in $160K/person. $320K/couple is not rich. The median ...
JTP - Apologise to Monica's user avatar
109 votes
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Why can't we all agree to create a self-fulfilling prophecy with regards to the stock market?

Instead of stocks, let’s apply this logic to houses. Houses are expensive. However, if I buy a house at a high price, I’m okay if I can sell it for more than I bought it for at some point in the ...
Ben Miller's user avatar
  • 116k
108 votes
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If a broad long-term investment in the stock market is such a good deal, why don't banks do the "obvious" things?

Fundamentally, I think there's a high level (and perhaps unsatisfying) answer to this. It's because that's not "banking" as a business, and a bank is established to do banking, not to get ...
dwizum's user avatar
  • 17k
102 votes

Why aren’t there more stock market prediction tools available?

If one could build a model for accurately predicting future stock prices then: Why would anyone share it? Wouldn't there be some individuals cornering the market, making people like Peter Lynch, ...
Bob Baerker's user avatar
  • 76.6k
92 votes
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Why isn't the market dropping like a stone with all the bad news?

Market reactions to information are not always timely, proportional, or rational. We don't know the full impact of our current situation; we're feeling it out. Some people (bulls), believe that the ...
Hart CO's user avatar
  • 70.5k
76 votes

Why do stock prices of retailers not surge during the holidays?

"Systemic and well know patterns in sales" are priced in to the security. Typically companies with very cyclical earnings like this will issue guidance of earnings per share within a range. These ...
quid's user avatar
  • 49k
75 votes
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What prevents stock prices from being artificially increased?

In a more liquid stock, like say Apple or Google, this is pretty difficult to achieve. That is because there are so many more actors trading the stock than simply Manipulator A and B. Naturally, more ...
HK47's user avatar
  • 847
74 votes
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The Venezuela Stock Market Crashed 99.90% on March 15th, 2021. What happened and why?

Not a crash, an adjustment. Because of the insane inflation, they have adjusted it periodically by dividing by 1000. Last one was March 2021. https://en.wikipedia.org/wiki/%C3%8Dndice_Burs%C3%...
Mattman944's user avatar
  • 1,718
63 votes

Investment strategy for Google: What did I do wrong?

It's tech-heavy because I am a tech guy and I always feel comfortable investing in a tech company. First, no you do not feel comfortable. You invested in an incredibly volatile company in a volatile ...
Eric Lippert's user avatar
  • 4,996
63 votes

Why can't we all agree to create a self-fulfilling prophecy with regards to the stock market?

Why can't we create a self-fulfilling prophecy of optimism in the market, thus benefiting everyone with investments in the stock market? Because a stock market is not a magic money-printing machine. ...
Philipp's user avatar
  • 23.9k
62 votes

Why isn't everybody rich?

First of all, "rich" is not an absolute term, but relative. Compared to people a thousand years ago, we are all fabulously rich - we possess invaluable boons such as modern medicine, electricity, cars,...
Superbest's user avatar
  • 2,688
61 votes

Paradox - When to buy & when to sell a share?

It's worth noting that Warren Buffett is a value investor, not a trader. As such, it doesn't tell you much about technical analysis or trend following. Instead, he's implying that when the market gets ...
0xFEE1DEAD's user avatar
  • 8,498
61 votes

Why do people invest in the stock market when it is forecast that a drop should occur?

The answer is that some people do not believe a further drop is coming, or that it will not be so large, or that it will not be so soon. The typical advice given to an individual investor is that '...
Grade 'Eh' Bacon's user avatar
59 votes

Why aren’t there more stock market prediction tools available?

These tools exist (see Nelson's answer), but they aren't available for purchase because once they become publicly available, they cease to work. The logic goes something like this. Suppose the stock ...
Allure's user avatar
  • 2,720
58 votes

Why isn't the market dropping like a stone with all the bad news?

The market reacts only to new information. It is already known that the new coronavirus has resulted in a pandemic. It was known long before the current situation. Having infections in most countries,...
juhist's user avatar
  • 6,743
57 votes

How can I make any sort of profit in day-trading if the price doesn't rise much after I buy stock?

Large profits in day trading are made via buying stock in volume not large rises in price. If you buy 100000 shares of stock and it rises by $10 (or whatever currency) then you sell for a large profit....
Zackary Murphy's user avatar
53 votes

Can a casual investor effectively predict the direction of the stock market?

Is the stock market an efficient market, with assets whose direction of change in prices cannot be predicted by casual investors? Predicting the direction of the market, and prices, is easy. I'll do ...
Magua's user avatar
  • 5,097
52 votes

Did an additional $32 billion necessarily get invested into Amazon.com stock on October 26th, 2017?

No, a jump in market capitalization does not equal the amount that has been invested. Market cap is simply the stock price times the total number of shares. This represents a theoretical value of ...
Ben Miller's user avatar
  • 116k
51 votes

At what point do index funds become unreliable?

A great deal of analysis on this question relies on misunderstandings of the market or noticing trends that happened at the same time but were not caused by each other. Without knowing your view, I'...
farnsy's user avatar
  • 15.1k
51 votes
Accepted

Did Johnson and Johnson really pay a 25% quarterly dividend in 1978?

No, your billionaire premise is not correct. Most people don't realize that share price drops by the exact amount of the dividend on the ex-dividend date when the stock exchanges adjust the closing ...
Bob Baerker's user avatar
  • 76.6k
47 votes

Why isn't everybody rich?

Most people have a high discount rate for their own money, meaning that they would rather have $1 now than $2 in five years’ time. Given such a high discount rate, there’s no point in saving, because ...
Mike Scott's user avatar
  • 23.5k
46 votes

Why do some countries have more than one stock exchange?

Consider times before the fast and efficient electronic communications. How would a trader from Chicago have an efficient access to an exchange in New York? So historically many major cities had an ...
littleadv's user avatar
  • 176k
44 votes

Does the stock price drop if one of the largest shareholders of the company sells all their shares?

I'm not sure I would classify Musk's recent TSLA share transactions as "selling like a madman". For one thing his holdings are extensive and he's sold, so far at least, only a small ...
jwh20's user avatar
  • 3,468
43 votes
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Why do baby boomers have to sell 5% of their retirement accounts by the end of the year?

In the US, "Traditional" retirement accounts are generally subjected to something called Required Minimum Distributions (RMDs). For clarity, a "traditional" account is one where there is a tax ...
quid's user avatar
  • 49k

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