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Investing in the equity markets can be both enticing and tricky. While the stock market has delivered inflation-beating returns to shareholders over several decades, just a handful of companies have driven the majority of these gains.
It is almost impossible for the average investor to identify winning bets consistently due to the ever-changing nature of businesses. For instance, just imagine investors who were once bullish on mobile phone manufacturers such as Nokia and BlackBerry. Both tech stocks delivered exponential gains to investors in the 2000s but burned massive wealth in the following decade.
It’s much better for new investors to gain exposure to low-cost, passively managed index funds rather than investing in individual companies.
Alternatively, investing in quality stocks that have the potential to thrive across business cycles can help you derive outsized returns and beat the broader…
