Let’s Kick The Bucket! 💪

First thing’s first, do a deep cleanse. FORGET EVERYTHING YOU KNOW ABOUT STOCKS. This first lesson will properly explain what stocks are and the fundamentals of how they work. There won’t be a glimmer of confusion as we put to bed some huge misconceptions! I will shepherd you toward three guiding principles that will serve you for a lifetime, so sit back and take it all in!


2 Ways Stocks Make You Money 💸

Stock Price Goes UpDividends
As the business reinvests profit back into itself, that drives the stock price up at a certain rate of return over the long term. In the short and medium term, expectations and sentiment about the stock can have a temporary impact.
If the business doesn’t reinvest profits back into itself (or pull any other fancy tricks), profits will be directly given to you. The profits your shares entitle you to will go straight into your bank account.

3 Almighty Principles ✅

Businesses tick with how people think, the drivers of which are invisible.

Stocks are slices of ownership in business, so owning a stock is owning a business. That’s very important to understand. If businesses tick with the decisions of everyday people, made either by head or by heart, then so do stock prices.

Short-term movements in the stock price say very little about the underlying business.

It’s fingers in ears time! You don’t want to be exposed to market noise that makes a drama over every 1% stock movement. Don’t press your nose up against the window, letting movements in the stock price act as your business news. You need to be independent, calm, and trusting of your own decisions.

Businesses are as diverse as the people running them.

No, you cannot make money by picking a winner in every single different industry. It is impossible to be an expert on everything, and those who don’t understand that often never specialise and dominate a niche.


 

Chris Morrissey

Chris started in financial advisory, assembling client portfolios with pension companies and investment banks. Following that, he worked at an agricultural commodities trader in London and now various "fintech" start-ups. He's also studying business full-time at Lancaster University. Feel bewildered by the stock market? Chris will help you get things under control.

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