From Nasdaq: 2025-01-17 12:23:00

David Gardner, co-founder of The Motley Fool, discusses the benefits of buying and holding stocks, rational optimism, and the future of space travel in a recent Motley Fool Money episode. Check out his weekly show, Rule Breaker Investing, for more insights. For investment advice, explore our beginner’s guide and top 10 stock picks.

Mary Long interviews David Gardner on Rule Breaker Investing principles that apply to life beyond stock picking. They discuss the value of long-term thinking, finding companies that add real value, and using the market as a teacher. Gardner shares an inspiring story of a man who turned $250,000 into a fortune by holding onto Microsoft stock for decades. David Gardner and Ricky Mulvey discuss the importance of holding onto great companies for the long term, despite short term fluctuations. They advise new investors to save more than they spend, invest regularly, and stay diversified. They caution against market forecasts and stress the importance of long term commitment to investing. Goldman Sachs predicts a 10% market return in 2025, but Gardner emphasizes the unpredictability of short term market movements. Despite uncertainties, long term investing has historically been a successful wealth-building strategy. David Gardner explains the benefits of self-directed investing over managed mutual funds, emphasizing the control and tax advantages. He criticizes one-year market forecasts and highlights the turnover in actively managed funds. Looking ahead to the next 20 years, Gardner predicts a 10% annual return for the stock market, with occasional bear markets lasting 18 months to 2 years. He encourages regular investing and holding top companies for long-term growth. In a recent discussion, David Gardner highlighted the rise of speculative trading on platforms like Reddit, with many individuals hoping to strike it rich quickly. However, history shows that such approaches often end in losses for inexperienced investors. Penny stock pump and dump schemes have been around for generations, and the internet has only made them more accessible. It’s crucial for investors to focus on real value and long-term growth.

The year 2022 saw significant losses for companies like Spotify and NVIDIA, despite their previous success. However, David Gardner emphasizes that true investment success comes from backing companies that create tangible value in the world. AMC, for example, has not shown sustained growth and is not a solid investment choice. Investors should assess whether their investments contribute positively to the world and avoid speculative trends promoted online.

Rational optimism, as discussed in the book “The Rational Optimist,” centers on humanity’s unique ability to combine ideas and innovate. In the investing world, this means constantly reassessing and adjusting one’s portfolio rather than blindly following a “buy and hold” approach. It’s crucial to stay informed, adapt to market corrections, and focus on investments that show real potential for growth and positive impact. In a recent discussion on X, users debated the idea of buying and holding high-growth tech stocks versus trimming them as they rise. David Gardner emphasized the importance of buying and holding to build wealth over time, cautioning against trimming winners too soon due to potential missed gains and tax implications.

Gardner highlighted the impact of selling winners prematurely, citing a study that showed Motley Fool Stock Advisor would have performed better without any sell recommendations. He stressed that the opportunity cost of selling a significant winner far outweighs the impact of a bad stock pick, encouraging investors to learn from mistakes and focus on long-term growth strategies. Ricky Mulvey and David Gardner discuss the importance of being a long-term optimist in investing, despite global risks like national debt and geopolitical tensions. They emphasize the resilience of the American economy and the continuous improvement of products and services, pointing to the stock market’s long-term growth as evidence of business success and innovation.

David Gardner highlights the growth potential in the space industry, particularly in low Earth orbit development. Companies like Sierra Space are working on innovative projects such as space planes, refined manufacturing for glass and microchips, and even 3D printing organs in zero gravity. While these ventures are still early-stage and profitability is distant, the potential impact on technology and healthcare is promising. David Gardner suggests staying informed about innovative developments, like those in the space industry, by reading sources like 1440 Daily. He emphasizes the shift from government to private sector involvement in space and the potential for growth in companies like Rocket Lab, cautioning against investing in speculative ventures like Virgin Galactic.

While excited about the future of space, Gardner advises caution when investing in emerging technologies like Rocket Lab. He stresses the importance of focusing on companies with real customers and scalable growth, citing Amazon as a successful example. He warns against getting caught up in speculative hype and urges investors to prioritize stability and scale.

Discussing Rocket Lab as a shareholder, Ricky Mulvey acknowledges the company’s technological advancements but expresses concerns about its long-term viability. He highlights the volatility of the stock and the uncertainty surrounding its adoption and success in a competitive market dominated by companies like SpaceX. Investors may need to carefully consider the risks and rewards of investing in emerging space companies. Rocket Lab’s inclusion in a portfolio hinges on individual risk tolerance, but the company is positioned for success in the space industry. Artificial intelligence and robotics offer potential for automation and job growth, with AI shaping the future economy. Cultivating a strong corporate culture, like Danny Meyer’s model, can drive long-term success in business. David Gardner, co-founder of The Motley Fool, discusses the importance of investing in companies with strong cultures and values, using Old Dominion Freight Line as an example. The trucking company’s family-run business model and employee-focused culture have contributed to its long-term success, making it a top stock pick. Gardner emphasizes the significance of company culture when choosing investments.

Mary Long reminds listeners to consider that individuals on the program may have personal interests in the stocks discussed, and The Motley Fool may have recommendations for or against them. The editorial standards at The Motley Fool ensure that all personal finance content is trustworthy and not influenced by advertisers. Long encourages listeners to make investment decisions based on sound research and analysis.

Randi Zuckerberg, former Facebook executive and sister of Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, is also on the board. David Gardner holds positions in various companies, including Amazon, Apple, and Old Dominion Freight Line. Mary Long and Ricky Mulvey also have positions in specific stocks. The Motley Fool has positions in and recommends several companies, highlighting its commitment to recommending products it believes in.



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