Should You Invest in the next Apple or Amazon?

Well, we’ve finally come full circle! We are getting into the social club business. I say this with a bit of a laugh, but it’s true. Starting on Monday, July 1, 2019, we will be holding a meeting comprised of individuals who wish to hold social events for our clients.

There is still a lot to iron out, but many of these events will bring together people with similar interests, inclinations, or goals. For instance, some events will be for widows, others for singles, others for married couples, and so on.

We see these social events as another opportunity to enjoy the company of others who have common interests without having to deal with online social networks. It’s getting back to basics, and it’s something a lot of our clients have asked for.

If you’re interested in spearheading a project like this (maybe you want to organize a group), or you’d simply like to participate, please get in touch. Email us through our website at mattsonfinancial.com/contact, or give us a call, and we’ll get your name down!

Now, I want to address a question I brought up in the February edition of the newsletter: Should you have bought Apple or Amazon stock?

It’s a question a lot of people think about. In hindsight, countless people would have loved to get in on the ground floor of the initial public offerings of either of these companies. Over the years, we watched as stock prices climbed … and climbed … and climbed.

The reality is, we can’t go back in time to buy these stocks. It’s not practical to even think about. But it’s this fear of missing out that has people looking for the next Apple or Amazon. People are now asking if they should invest in things like Bitcoin or marijuana.

So, should you invest in the next big thing — whatever it might be? The answer is no. None of us know what the next Apple or Amazon will be. And while investing in IPOs sounds like a good plan, the losers far outweigh the winners.

In fact, the losers outweigh the winners an average of 15:1. For every 15 IPOs that hit the market, only one will make money for investors. The rest will fall flat or lose money for those who invested. You have to be cautious.

While the success stories are great and there are highlights that get us excited, we don’t hear about the failure. We don’t hear about the millions of dollars that are lost or the people whose lives are left in financial ruin.

The key to a stable financial future is consistently investing over time. It’s having a diversified portfolio and rebalancing as the market changes. Taking these steps will keep you out of trouble and help you avoid big losses. It’s how you put yourself and your assets in a better position year after year.

While it’s incredible to see a volcano erupt, it’s something you want to do at a distance. An erupting volcano can turn from majestic to monstrous before you know it. As amazing as it is, it is a destructive force not to be reckoned with. You can say the same about IPOs. Watch from a distance — and invest smartly.

–Gary Mattson

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