What is the Stock Market?
I think it’s really easy for people to overthink or maybe even under-think what a stock market is. And of course, when we’re not thinking about it properly we can make all sorts of mistakes on it.
I think a lot of people think about the stock market as this weird, ethereal mass we just put money into and hope for the best. But it really is something that is quite basic and simple. At its most basic level the stock market is just a market where you can buy pieces of businesses, or you can sell pieces of businesses if you own them and they’re publicly for sale.
So, there is no need to overthink it and there is definitely no need to under think it or be scared of it. Obviously, some businesses are going to be better quality than others, and some will be better deals than others. But at its fundamental level the stock is just a place where we buy and sell publicly traded businesses.
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