My friends and I began investing in April 2020, around the bottom of the Covid-19 stock market fall. Initially, I speculated for 1-2 months. Then I realized I should buy and hold broadly diversified stock index funds. Compared to April 2020, my portfolio was up +115% by the end of 2021 and up +78% now. It is AFTER taxes. If I had not speculated, I would pay fewer taxes, and my portfolio would be higher.
Compared to April 2020, my friend's portfolio was up +400% by the end of 2021 and is down -80% now. And it is BEFORE taxes he has to pay due to huge short-term capital gain. The amount of taxes he has to pay is higher than the value of his portfolio today.
Stay away from small-cap growth stocks!
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