Speculative stocks—especially emerging market stocks, penny stocks, rare materials stocks and derivatives—are high risk, high-reward, and therefore appeal to short-term traders. Alas, if day trading was that easy, 90% of day traders wouldn’t be failing year after year. At the Daily Journal Corporation (DJCO) annual meeting on 16-Feb-2022, the 98-year-old Charlie Munger answered questions:

The idea of getting more value than you pay for that’s what an investment is. If you want to be successful, you have to get more value than you pay for. And so it’s never going to be obsolete.

Now you can get a whole body of people that don’t even know what they’re buying. They’re just quotations on the ticker… Think of the past crazy booms and how they worked out. The South Seas bubble, the bubble in the late twenties, so on and so on. We’ve had this since the dawn of capitalism. We’ve had crazy bubbles.

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