By now we have all heard about meme traders gambling on trash stocks to make a quick profit. Sometimes it works, but most of the time it doesn’t. In essence, this mindset is the exact opposite of normal investing. Despite this difference in investment ideology, there may be something that we can learn from the apes.
They have leveraged Reddit communities to spread investment ideas. What is unique about the phenomenon in my mind is that they have convinced large amounts of people to all invest in a certain stock at a certain time.
The downfall of their plan is that it only works if people keep their positions, and it is inevitably short lived due to the volatility. The companies they target have little to no future value, so the only reason to hold on to stocks is the blind faith that others will do the same. There is no end game plan, and the final bag holders will inevitably get burned.
Imagine a hypothetical scenario where a large group focuses on a single quality company that has the ability to (1) provide value for many years (2) continue to grow as a company and (3) continue to grow their dividend for income as the people age.
I am 29 and I plan on investing in MSFT for the long term (25+ years) unless something fundamentally changes with the company. I have a dividend growth mindset due to my age and I know that does not work/apply to everyone. I will be dollar cost averaging $100 a week into their stock for the foreseeable future.
I am telling you what I plan to do. I am not telling you what to do. I am not suggesting to you what you should do. I will be doing this for years no matter what is discussed in the comments, or if this post gets deleted.
There are more than 4.4 million people in this sub. Do whatever you want with this information.
Thank you for your time,
Tendiefingers
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