A steady upward trajectory is the only logical path for the stock market because shares are proportionate ownerships in profit-making businesses, and over time profit accumulates.

Proper diversification means investing in uncorrelated assets, and investing in multiple assets needs multiple sets of knowledge, more hours of research, and more marketfollowing. It is definitely more work for an investor.

A modest rate-of-return can accumulate a fortune over time. You don’t need to beat the market, do over-leveraging, or pick the best stock to be rich. You just need to earn a decent rate-of-return and let your money compound overtime.

Compounding has a snowball effect. It is just a tiny ball of snow at the very start, but it can turn into an avalanche over time.

If you decide to buy a stock solely based on price action, you cannot and will never have any faith in the company’s business.

Long-term price growth has three factors: yield, inflation, and business growth.

Nothing wrong with buying high PE stocks; however, expected business growth must justify the high price.

When you buy a stock, you buy a piece of business, not a quote from a broker. As long as the company is doing good, your investment is safe.

The most important thing is to invest and buy shares in successful businesses. The second most important thing is to buy right and do not pay excessive amounts.