When I was a teenager, my dad opened up a trading account for me and gifted me $500 to buy stocks. I had no idea about anything regarding stocks at the time. The only thing I knew was to “buy low, sell high.”
Around this time, there was something in the news about a great financial crisis. I wasn’t sure what it was all about at the time, but I just knew the economy wasn’t doing so hot. One of the banks near where I lived was also in the news a lot. My parents used that bank too so I was familiar with it. The name of that bank was Washington Mutual. Apparently it was in a lot of trouble, cause a lot of adults around me were talking about it going out of business or something.
Well, to me it sounded like it was a great opportunity to buy it as a “buy low, sell high” moment. Also, since my dad had gifted me the $500, it felt like I had nothing to lose. I made the stock purchase in July 2008.
Two month later, they filed for chapter 11 bankruptcy and delisted from the NYSE.
Since then, I’ve invested mostly in safe index funds and watched my portfolio grow slowly and steadily at a comfortable pace that I’m completely satisfied with.
PROOF:
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