Quote from Benjamin Graham (1949 updated 1972). With the $GME/wsb saga and the rise of the meme *investor*, there’ll be many policy discussion around inequality, access to financial markets, financial literacy, and regulation of information companies in coming weeks to years. 1/

But for friends who asked for investment advice advice, which I don’t have any, it’s good to keep in mind that the stock market is a big place with many rooms:
THE CASINO, THE FACTORY, and THE MINING RIG 2/

Location: THE CASINO
Nickname: Day Trading, YOLO
Timeframe: week, intraday, nanoseconds
Methodology: Chart *analysis*, pump and dump, bots
Signals: Elon Musk tweets, astrology

You don’t wanna be speculating at the roulette table where @R_Thaler and @selenagomez were sitting. 3/

Location: THE FACTORY
Nickname: Long-term investing, HODLing
Timeframe: Till Retirement, Lifetime
Methodology: Spend less, Save more & diversity investments (e.g. ETFs)
Signals:

You get/pay a share in the gains/losses of most/all businesses + peace of mind. You wanna be here 4/

Location: THE MINING RIG
Nickname: Value investing
Timeframe: Years, Lifetime
Methodology: Firm statements, earnings reports
Signals: The opposite of market trends

You can find oil or you can be wrong. You might wanna dip your toes here if you have the extra time/resources. 5/

After $GME, people who joined after the last peak, the bagholders, will be disillusioned with investments. It’s important that retail trading platforms be designed for investing rather than speculating.

This is not investment advice
I’m just an AP with a twitter account6/6

https://twitter.com/michaeljburry/status/1359030918548058114