Key insights
- The article questions the win rate of successful investors like Warren Buffett, suggesting a large portion of investments may not be profitable. It touches on the debate between investing in stocks versus alternative assets like gold and real estate, particularly in light of geopolitical uncertainty. The author seeks validation for their investment approach amidst skepticism, but the article lacks concrete data or analysis to significantly influence US equity markets.
Did Warren Buffett make his entire wealth from only 4% of his investments, and did he actually lose money on the remaining 96%? Can anyone confirm whether the rest of his investments provided average returns or were entirely losers?
Some people try to convince me not to invest hard-earned money in stocks because of social stigma, comparing it to gambling rather than seeing it as a legitimate investment in a profitable business. These individuals may have lower financial literacy or simply a low risk appetite they mostly store their wealth in gold or real estate. I consider that 'dumb money' betting on things just because they exist, are finite and with no economic activity and are illiquid enough that you can't check the prices daily (especially with real estate).
They are trying to discourage me from investing in stocks and mostly because of this current geopolitical situation. I know what I am doing, but I want to know do these billionaires really have low win rates? Do they make their entire fortune from a few right decisions while losing the rest of their capital on the others?