Best stocks to invest in: What matters most?

“Mark, you know, sometimes I wonder what would have happened if I had invested in a share like Apple when I was in my early 20s,” he sighed. “Then I wouldn’t be so worried and concerned about my retirement now, would I Mark?”.

If you’ve ever felt like Walter, I can reassure you. Of course, it’s easy to look back and identify the best stocks to invest in, but having the courage to persevere in uncertain times is something else entirely. Even if my friend Walter had invested his initial savings in Apple to provide for his retirement, he probably wouldn’t have stuck with it. The severe setbacks over the years would almost certainly have led him to sell his shares – probably at the worst possible time.

Best stocks – the performance of Apple shares provides clarity

Why am I so pessimistic? Pure practical experience! Even the most successful companies go through extreme ups and downs at times. Let me illustrate this with the example of Apple shares – proven to be one of the best stocks to invest in.

What would have happened if my friend Walter had invested his CHF 10,000 savings in Apple shares in his early 20s, a good 40 years ago? And would he really have provided for his retirement?

Walter’s fortune in Apple shares

Ah, Apple shares: the never-ending story of “woulda, woulda, coulda”! Imagine if you or Walter had bravely invested in Apple 40 years ago, full of hope and confidence – only to realize 15 years later that your money is worth exactly the same as it was when you initially invested. Bravo! What a brilliant strategy! You can look forward to 15 years of financial rollercoaster rides, only to end up exactly where you started. Really impressive, isn’t it? Hand on heart: would you really have remained patient during such volatile movements and continued to believe in Apple’s potential for success? Hardly. And you would have been far from alone! Theoretically, Walter would have made it after 40 years of Apple shares and could have retired financially secure – but only in theory. The reality would probably have been different…

Amazon and Microsoft suffered similar fates – in the early 2000s, investors had to hold their nerve when the shares fell by over 90 % in some cases. Even today, there are stocks that are touted as the best stocks to invest in and then turn out to be a real rollercoaster ride. Just think of Tesla. A dynamic company with great growth potential. The share price initially rose steeply before plummeting by over 65% after peaking in 2021. What can we learn from this? Successful investing requires patience, confidence and a cool head – even with the supposedly best stocks to invest in. It’s not about finding the perfect time to buy or sell, but about not being discouraged by short-term market fluctuations. If you follow these principles, you can achieve attractive long-term profits despite temporary setbacks.

Even the best stocks to invest in require patience & a cool head

You may often wonder whether you have already missed the best stock to invest in. But let’s be honest: rushing into individual stocks can quickly turn into a nerve-wracking game of chance – as the share price performance of many a technology giant has impressively demonstrated.

A systematic approach is therefore much more important than tracking down the next best stocks to invest in. Risk management, diversification and patience are the magic words here. Imagine your portfolio is a colorful garden of different plants. If one plant (or share) hangs its head, others may just start to blossom. And it is precisely this mixture that makes the decisive difference so that you can sleep soundly.

What about the emotions? Let’s leave them out of it. A cool head is worth its weight in gold when investing – no panic selling at the first signs of turbulence, but perseverance and confidence in the long-term investment strategy. That way, you won’t be unsettled by short-term market fluctuations when it comes to the best shares to invest in. So, the next time you think of supposedly missed opportunities with a wistful smile like my friend, remember the following: Successful investing is not a sprint, it’s a marathon.

With a well thought-out strategy, the right amount of patience and a good pinch of risk management, you can achieve attractive long-term profits even without a crystal ball. So stay calm, stay focused and above all – stick with it!

Yours, Mark Stock©

Mark Stock is a member of the Point Capital editorial team. “I am a stock market enthusiast and am passionate about economic history. I have been following the ups and downs of the markets for years and, of course, invest myself – preferably in shares. So my name says it all. Every month, I take up what I consider to be an exciting topic. And since the focus is on the content and not on me personally, I write under a pseudonym.”