GameStop’s stock surged yesterday, on the backs of Redditors, Robinhood investors, and Elon Musk
But seriously. This business with GameStop, while sort of comical, is not that shocking. Sure it might be fun in that that professional investors got their butts handed to them by Redditors and Robinhood investors, but this is a warning sign for individual investors.
The stock market is manipulated daily by professional investors, and now it can be manipulated by the masses.
It happens daily. And usually never makes big news like it did yesterday, but let’s face it…the rich continue to get richer and the individual investor is left holding the bag with their financial advisor’s poor advice, misallocations, high advisory fees and expensive mutual fund expense ratios.
The financial system in the US, and in other developed countries, is a rigged system and has been for a very long time.
Fred Wilson, a VC at USV via AVC.com
All these reasons point to why individual investors should invest in the entire market.
An Index Fund similar to VTI or VTSAX is the only way to go for an individual investor.
If you invest in VTI or VTSAX You are investing in 3,634 US stocks at one time.
You are investing in the ENTIRE market and your risk is minimized as much as possible.
The dealings of unscrupulous individuals, hedge funds, professional investors and stock manipulations are now minimized, because you own a piece of all 3,634 stocks when you are investing in VTI or VTSAX.
GameStop is a prime example of the reason why I fired my financial advisor and am moving out of expensive funds and individual stocks.
I don’t want my wealth to be determined by a rigged system, when the tools to become wealthy in a simple and automatic manner are right in front of me. Thank you John Bogle. This book changed my entire outlook on investing in one day.