Let me tell you a story about Jamal Johnson.
Jamal had been fortunate enough to have parents that were financially responsible. Those parents made sure to invest consistently from his childhood because one day they knew they wanted to send him to college without the huge burden of student loans.
As Jamal graduated from college and started his career in 1999, his parent’s foresight allowed him, without having student loans hanging over his head, to begin investing a reasonable amount of his post graduate salary.
He only had $4k per year to invest in these early days.
In the November 1999, toward the height of the tech boom, he spent $1,000 on each of the following four stocks he chose at random:
Then in the year 2000 as the tech collapse got into full swing, he saw a bunch of layoffs around him. Those who survived these layoffs were forced to essentially double their workloads overnight to make up for the help from other team members that used to be available.
He noticed himself and all of his co-workers had essentially become caffeine addicts overnight.
He decided to keep investing and spent $1k each on the following 7 stocks:
Yahoo (added to his position)
Microsoft (added to his position)
Sprint (added to his position)
Best Buy (added to his position)
Monster Beverages (new position)
Starbucks (new position)
Keurig (new position)
Life happened and little Jamal Johnson never got around to investing anything else. But since he was debt free, he never had to touch his investments in an emergency.
Fast forward to 2016, his holdings looked like this:
Best Buy ($3,078.67)
Monster Beverages ($616,347.81)
Amount spent in 1999 = $4k
Amount spent in 2000 = $7k
Total spent for both years = $11k
Total portfolio value in 2016 (not even including dividends) = $709,029.12
And that was on two years of contributions to his portfolio.
You have any idea how many millions his portfolio would have had if he rented and used his cash flow to make the same $7k in investments every year since then?
But never mind all that. Back to your orderly complaining about there are no opportunities for people who look like you.
Investing in publicly traded companies is the most racially agnostic sport you can ever take part in.
Also, its not about “what if I lose all of my money in stocks”. The question is “what if I don’t?”
A company’s stock can only go to zero. It can rise through infinity however.
You only need one winner amongst dozens to make everything else not even matter.
Use ETFs to safely diversify during normal markets and individual stocks in market crashes.
“the stock market is the only market where things go on sale and customers run out the store”
Be the person running IN the store.
Now thats a risk vs reward ratio I like to take part in.