April 19, 2024
How to Make Money on the Stock Market. | by Chris Soschner | Feb, 2024


The Meta story

Master the emotional game

DataDrivenInvestor
Canva Pro Image with a Screenshot from Seeking Alpha (Premium Subscription)

“Warren Buffett said about 20 years ago that the average stock fluctuates between 50% down and 200% up in every single 12-month period.”

“No way,” someone said.

This was also something I thought about years ago. No way the stock markets are that wild.

But they are.

Investing in hindsight is simple.

Let’s look at $META, Mark Zuckerberg, and good old Facebook. A fantastic story from startup to IPO and beyond.

The year is 2003.

His first world-changing, visionary product was Facemash. He hacked into the university’s online directory, downloaded photos, and set up a site to rate which girl was “the hottest chick.”

Why did he do that? The “poor” guy was heartbroken because his girlfriend dumped him.

Facemash went viral at Harvard, and in the aftermath, Zuckerberg almost got expelled.

Probably, it led to his thought process of creating Facebook. There seemed to be a demand. It happened in 2004.

Many sites write that Zuckerberg suffers from a “low moral code” and cite the Facemash story as proof.

However, as people grew up, he developed the idea of connecting the world, reducing friction in global communication, and helping build communities.

Success creates envy. And with that, hearings and lawsuits.

Each event leads to fluctuation in the stock price.

Making money with Facebook, in hindsight, was easy. Buy at the IPO price of 38 dollars. Hold it.

Today, it’s valued at 480 dollars. Seeking Alpha reports a gain from IPO of 1,400% — 15 times the investment.

Someone who invested 10,000 dollars now has 150,000 dollars.

Why do so many people lose money in the market when it’s so easy?

The first time I heard that Facebook was dead was back in 2008. “Don’t create a profile. Facebook is dead. And having an FB profile will harm your career.”



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