Motley Fool Money The Fundamentals of Financial Data, with Tom Gardner and Ayal Cusner
Jan 22, 2022
Ayal Cusner, the Investing AI & Automation lead at The Motley Fool, joins Tom Gardner to break down the math behind stock volatility. They emphasize how understanding this math can provide peace of mind during market fluctuations. The duo explores the fundamentals of growth-oriented companies and discusses the long-term potential rewards of navigating stock market ups and downs. Additionally, they highlight the significance of diversification and balancing portfolios to enhance returns while managing risks.
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Volatility and Growth
- Volatility is a natural part of investing, especially in growth stocks.
- Understanding this connection helps investors embrace volatility for better returns.
Embrace the Rollercoaster
- Expect and prepare for significant drops in your portfolio value over time.
- It's a normal part of investing and not a reason to panic.
Time and Returns
- Holding stocks longer increases both volatility and the probability of profit.
- Longer holding periods also lead to larger potential gains.
