People always ask, “When is the right time to invest?” The correct answer? “Almost Always.” But let’s be honest—most people are like deer in headlights when it comes to investing. They sit on the sidelines, clutching their savings like a squirrel hoarding nuts, waiting for the “perfect” moment. And when that moment finally arrives, they panic—“What if the market crashes the second I invest?!” Well, buddy, the market doesn’t wait for your feelings. Just look at the 2008 financial crisis or the pandemic—great companies looked awful for a while, but they bounced back.
A disciplined investor keeps scanning for opportunities, rain or shine, bull or bear. Take today, for example—there are treasuries, bonds, or investment grade, stable companies offering dividend yields of 4.5–6%. That’s like getting free money! Meanwhile, tech and crypto are where all the adrenaline junkies are hanging out, hoping their risky bets don’t turn into financial disaster. A smart investor? They look where others aren’t.
The trick is to stay in the game. Sitting out because of fear means missing both the crashes and the recoveries. There’s always an opportunity somewhere, but where you invest depends on your situation and your expected return.
My advice? Don’t chase the high-flying stocks, and you’ll be fine. With Trump back in power, the next four years could be a financial rollercoaster. If you think stocks are overvalued now, just wait until regulations are slashed and interest rates drop— we might be in for the mother of all bubbles.
At the end of the day, market valuations depend on interest rates. If nothing looks exciting in the U.S., look abroad! The U.K., Europe, Asia—there’s always somewhere to invest. A real investor never runs out of ideas.
So don’t just sit there, staring at your bank account like it’s going to grow on its own. Get in the game.
Now, that doesn’t mean you should YOLO all your money into stocks without a plan. Hold some cash reserves—always. But if all your money is in cash, you’re basically admitting you’re too scared to invest in the first place.
Investing is always a trade-off between risk and reward. First, take care of yourself, your family, your kids. Make sure you have a home, their education covered, and at least one year’s worth of expenses saved up. Once your financial foundation is solid, then you invest.
Now, let’s be real. Even if you invest in strong companies, there will be times when your portfolio looks like a dumpster fire. Seeing a 50–60% unrealized loss for a couple of years? That’s part of the game. If that kind of drop makes you sweat like you’re in a sauna, investing might not be for you. Patience and conviction are everything.
Dollar-cost averaging (DCA)? Overrated. Seth Klarman said it best in Margin of Safety, and I agree. DCA only really works if you’re buying in a recession. Otherwise, you’re just consistently overpaying during market upswings. Why would you want to do that?
If I ever invest in an index fund or ETF, I’d only buy more when the market is down. Same goes for strong individual stocks like Berkshire Hathaway (BRK)—you’ll likely see way better results that way.
Consistently buying every month no matter what? That’s a rookie move. DCA is best for people who know absolutely nothing about investing—like retirees who just need exposure to the market without learning the ropes. Even then, their returns depend on when they start and how long they live to enjoy it.
For a young investor with even a tiny bit of investing knowledge, DCA is a lazy strategy. You don’t have unlimited capital, so use it wisely! Instead of blindly throwing money into the market, focus on learning and making smart investments.
Let me leave you with two key takeaways:
- Warren Buffett recommended DCA for his wife and kids—people who, financially speaking, couldn’t tell the difference between “security” (as in safety) and “securities” (as in investments). That should tell you exactly who DCA is designed for.
- If Buffett ever invested in an index like the S&P 500 or Vanguard, he never kept buying in an upmarket. He only added when the market was down. And when things got too hot? He cashed out. Most investors completely miss that part.
Disclaimer:
WARNING: This is NOT investment advice! Some content on this platform is generated using AI tools.
I am not your financial advisor, your accountant, or your Guru who somehow always knows what stocks to buy. I do not have a crystal ball, a time machine, or insider info from Warren Buffett’s secret diary. Investing is risky, and while I highly encourage you to stay in the game, I also encourage you to use your own brain.
Before making any investment decisions, do your due diligence, research thoroughly, and consider your own financial situation. If you invest recklessly and end up living in your mom’s basement eating instant noodles, that’s on you.
Remember: Markets go up, markets go down, but bad investment decisions stick with you forever. Invest wisely!