Personal Finance | November 18, 2021

Rock Solid

Investors added more money into stock-based funds between November 2020 and March 2021 than they did in the previous 12 years.1 Much of that influx came from new investors inspired by the post-pandemic rally—and it’s thrilling to see so many newcomers starting down the road of what I hope will be a lifelong pursuit.

I traveled a similar path during my first investing job, where I learned about the markets, research, risk, volatility, and ultimately the wisdom in taking a thoughtful, planned approach to investing. I hope today’s new investors are learning many of these same valuable lessons.

During this past year, for example, some who went all in on so-called meme stocks may have discovered the importance of diversification the hard way. Others who tried their hand at trading options—a complex strategy with a high degree of risk—may also have taken it on the chin. With experiences like these, you quickly appreciate the downside of risk.

That’s why I’m such a big proponent of tried-and-true guidance, including Schwab’s 7 Investing Principles, which can help you achieve your goals while avoiding some of the potholes along the way. And because it’s never too early to start, I’m also eager to engage younger generations, such as with the entertaining and informative new Schwab MoneyWise™: The Game (download it from the App Store®).

Whether you’re a seasoned pro or just starting out, remember that investing is a journey—and that success comes not from a series of quick hits or lucky breaks, but from creating a plan and sticking with it.

 

Charles R. Schwab

Founder & Chairman

1Jeff Cox, “Investors have put more money into stocks in the last 5 months than the previous 12 years combined,” cnbc.com, 04/09/2021.