Potential spoiler alert if you haven’t seen the new Superman movie.
The latest Superman movie, like others before it, have a “wealth and power” theme at the core of the plot as the main bad guy, Lex Luthor, is largely driven by both. While conjuring up some complex scheme to destroy Superman in his constant pursuit of more wealth and power, Lex Luthor always seems to overlook the greatest wealth-building machine ever created.
“It’s a bird, it’s a plane, it’s the Stock Market.” — Long-Term Investors
Why does the market always go up? The primary reason is that the concept of survival of the fittest cannot be more true when it comes to the stock market.
There over 4,000 U.S. publicly traded companies. Over time, the underperformers get purged out of an unforgiving, competitive environment where only the strong survive. The weak get delisted or their share price drops to zero. They are then replaced by new entrants that are tested in the same way. This is the circle of life for publicly traded companies.
The outperformers that can weather the elements, however, continue to grow organically and through acquisitions, providing countless benefits to society and the economy. Our standard of living and hopefully our quality of life continue an upward trend as a result—at least that’s the idea. The best public companies and their share prices have no ceiling and neither does the extent of the innovations that they output (e.g., AI).
It is this unlimited upside borne from constant innovation, disruption, invention and reinvention that propels the market ever forward.
But don’t be mistaken, the journey toward the summit can be a treacherous one. It is true in investing (and in life!) that there will be obstacles that will challenge your stamina, discipline and ability to stay calm and stay the course during the toughest of times. If you can withstand them, you can’t help but ascend over the long run.
“A hero is an ordinary individual who finds the strength to persevere and endure in spite of overwhelming obstacles.” — Christopher Reeve
Not sure where to start or know someone that could use the help? Be their hero and send them this article and the UVstocks.io link.
P.S. I'm sharing some investment information, but it's important to remember that what I'm providing is for informational purposes only and should not be construed as financial advice.
Happy Investing,
John
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