WHY DO WE INVEST?

We invest to make money. We buy stocks because we want to see the stock price go up. Have you ever met anyone who buys a stock hoping it will go down in price? But we also invest because we want to see our stocks go up more than the stocks we didn’t pick or all of the stocks out there (known as the market).

So we look for something that predicts the future and tells us our stocks will go up more than the stocks we didn’t pick or more than the market itself. No one can predict when a stock will outperform other stocks or the entire market; nothing and no one will ever tell us the future direction of a stock price’s movement. Stock price movement is random and picking stocks is all controlled by luck. However, if we all agree that our goal is to make money then the method that has proven to make us the most money over time becomes The Right Way to Invest.