At the close of trading in New York, the 500 richest people on the globe had added $336 billion to their fortunes, the biggest haul ever recorded in a single day, according to the Bloomberg Billionaires Index. That brought their collective net worth to a record $13.3 trillion.
Elon Musk, the world's first trillionaire, extended his lead over the group with his net worth rising more than 10% to $1.27 trillion. And the dozen people at the bottom of the list — the least wealthy of the world's superrich — each stood at $7.9 billion, the highest-ever bar to enter the index.
Yes. I was a good bit richer at the close of trading yesterday. So were most people with IRAs, 401(k)s, 403b funds: about 60% of Americans. As I explain in my instructions on how to get rich, the traditional model of investing in stock funds when young, transitioning to safer but slower growing bond funds as you get closer to retirement is low risk but low return. I have gone all stock funds and enjoyed enormous growth through several crises (dot-com bubble, housing collapse in 2008, Covid) much richer than I started.
The secret that is not really a secret to making money in the stock market is to invest in solid companies, Pepsico, GM, Microsoft or some other technology related company, and then leave it the heck alone. If there is a huge recession, leave your stocks alone. Eventually they will come back up.
ReplyDeleteA friend of mine always said that bulls make money, bears make money, but pigs go broke. Trying to outguess the markets is pretty much a losers game, except for those who have inside information that the general public is not privy to.
Diversification is why mutual funds often outperform the market.
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