If You Want Thrills, Then Trade. If You Want Wealth, Then Invest.

Say that you buy gold biscuits with your savings. The only way you can make money is if you sell it to someone else at a higher price. The gold biscuit by itself doesn’t do anything – it doesn’t generate cash flows or add any economic value – it just sits there. 

Trading is about buying an asset in the hope of selling it to someone else at a higher price for a profit, faster the better.

Let’s now say you buy a farm and never sell it. The way you make money is from the farm itself, from the cash it generates. You will work on increasing the cash flow it generates, and you will compare what it generates with how much you paid to buy the farm. If the value of your farmland goes up because of superior yield or urban development, then your wealth goes up too, even if you never sell the farm. This is an investment.

Investing is about buying an asset and looking at the asset itself to generate wealth for you. Investing is both fundamentals-aware (how much cash it can generate) and valuation-aware (how much did you pay to own those cash flows). Investing does not depend on someone else coming along to buy your asset at a higher price.

You can trade a stock many times every day, or you can hold the same stock for a lifetime. Which approach is superior for generating life-altering levels of wealth? In which approach can you put all your life savings and sleep well at night?

In this webinar, we will contrast trading, market timing, and other short-term approaches with long-term investing that we practice at GFM Focus Investing. We showcase how prudent, long-term investing puts the odds of success in our favor and generates significant wealth in a world filled with uncertainty, volatility, costs, and taxes.

Join us for this webinar and benefit from our experience. Become a successful investor.