My intension with this book is to teach you a simple way to create wealth with stocks while taking away a lot of the risk. If you simplify your investment process, minimizing any room for mistakes, you take away a lot of the risk. If you only invest in companies with great potential for long-term growth and/or income, based on facts not emotion, you take away a lot of the risk. If you only buy stocks at reasonable prices, protecting you from stock price declines, you take away a lot of the risk. And if you hold onto companies with great potential for long-term growth and/or income, which you bought at reasonable prices (only selling if the great potential for long-term growth and/or income goes away) you create wealth.
I focus on the business not the stock price. If all the business metrics I cover in chapter 4 (How to Pick Great Companies) are still good, and the only thing that has changed is the stock price, (because of how others perceive the company due to a temporary setback) there is nothing to fear. You're investing in a business not a stock price. If the company still has great potential for long-term growth and/or income, the stock price will reflect it over time. Remember, economic slowdowns and bad news on companies with great potential for long-term growth and/or income create great buying opportunities. Trust the facts in your research not the fear in the market.
Don't miss out on the opportunities that are all around us. For many years, a lot of us have bought and used products from Amazon, Apple, Coca Cola, Home Depot, Microsoft, Nike, Starbucks and Walmart but never thought to buy the stock. We missed out on a lot of money. It's time we stopped missing out. Every time you buy something you should get in the habit of asking, is this company publicly traded, and is it worth owning? Especially if you really like what you bought.
And understand it takes knowledge, money and time to create wealth.
