In this weekend conversation, Tom and David Gardner, co-founders of The Motley Fool, talk about things including: How investing fits into the pursuit of becoming smarter, happier, and richer. The importance of being a lifelong learner and investor. Using index funds and how to approach buying individual stocks. Two core Motley Fool approaches -- Rule Breaker and Everlasting investing philosophies. Setting the right expectations for returns. Mastering the mindset of investing and managing volatility. You can follow Tom and David on Twitter @TomGardnerFool and @davidgfool. To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center . To get started investing, check out our quick-start guide to investing in stocks . A full transcript follows the video. This video was recorded on Jan. 08, 2022. David Gardner: There's no substitute for being invested with skin in the game in the world at large, and it does have you, once … [Read more...] about How to Invest — and Why — With Tom and David Gardner
What happened Shares of Chinese electric-vehicle maker Nio ( NYSE:NIO ) opened sharply lower in U.S. trading on Monday amid a broad market sell-off triggered by rising global tensions and interest rate fears ahead of a key U.S. Federal Reserve meeting. As of 10:15 a.m. ET, Nio's American depositary shares were down about 11.9% from Friday's closing price. So what Nio was just one of many companies that saw their shares hit hard in early trading on Monday. Traders and investors are concerned about higher interest rates, which now seem likely amid the highest inflation in years. The U.S. Federal Reserve will begin a two-day meeting on Tuesday that could end with a signal that rates will begin rising as soon as March. Nio confirmed recently that it's on track to launch its next new product, the ET7 sedan, in March. Two more new Nio models are expected before the end of 2022. Image source: Nio. To be clear, there was no negative company-specific news driving Nio's … [Read more...] about Why Nio Stock Is Sinking Today
While some investors are worried about the next market crash, others are taking advantage of this fact: if you have the cash on hand, it's a great time to add more high-conviction stocks to your portfolio right now, and often at discounted valuations. In this segment of Backstage Pass , recorded on Jan. 5 , Fool contributors Rachel Warren, Jason Hall, Trevor Jennewine, and Jamie Louko discuss their top stock picks to buy and hold in 2022 and beyond. Rachel Warren : I don't think any of us can predict where the bottom is. I think we're going to be seeing a lot of ups and downs in the market. You also have a lot more investors that are retail investors that are prone toward more speculative assets now than they had been in times past, and that is also driving some of that volatility. One other question from Vihaan touches about what we're talking before, "Five team, what are three gold stocks from each of you, you would add or take a position in as you see 5% dip … [Read more...] about 4 Investors Pick Their Top Stocks for 2022
Between 1928 and 2021, the S&P 500 generated positive returns during 62 calendar years. In other words, the broad market gained ground about two years out of every three. Those aren't bad odds for investors. But over the same time period, the S&P 500 also generated a total return of approximately 10% per year. Thus, while your holdings may go up or down in any given year, your odds of generating a profit with a diversified portfolio improve as your investing time frame gets longer. That illustrates the importance of a buy-and-hold mindset. Rather than trying to time the market, focus on investing in high-quality stocks for the long haul. For instance, Airbnb ( NASDAQ:ABNB ) and MercadoLibre ( NASDAQ:MELI ) are growing quickly, and both could make you richer over the next decade . Image source: Airbnb. The case for Airbnb The pandemic has significantly altered the course of numerous industries -- few of them more than travel and tourism. Far more … [Read more...] about Want to Get Richer? 2 Unstoppable Stocks to Buy Now and Hold for the Next Decade
Airbnb ( NASDAQ:ABNB ) went public in Dec. 2020 at $68 per share. The short-term rental provider's stock opened at $146, hit an all-time high of $219.94 last February, then pulled back to the $160s over the past year. Airbnb clearly remains a battleground stock for the bears and the bulls. Let's review both arguments and see which thesis makes more sense. What the bears will say about Airbnb The bears generally don't like Airbnb for four reasons: the competition, the regulatory headwinds, its high valuation, and the pandemic-related threats. Airbnb enjoys an early-mover's advantage in the short-term rental market, but it faces a lot of competition from traditional hotels and online travel agencies (OTAs). In the hotel space, Accor ( FRA:ACR ) bought Airbnb's competitor One Fine Stay in 2016, Marriott ( NASDAQ:MAR ) partnered with the home rental platform Hostmaker in 2019, and other hotel chains are launching cheaper brands to compete against Airbnb. Image … [Read more...] about Airbnb Stock: Bear vs. Bull
What happened Shares of Ford Motor Company ( NYSE:F ) opened lower on Monday amid a broad market sell-off driven largely by concerns about rising interest rates. As of 10:30 a.m. ET, Ford's shares were down about 4.7% from Friday's closing price. So what Ford's was one of many stocks that took hard hits in early trading on Monday. There were several possible catalysts for the sell-off, but the primary trigger seemed to be concerns about interest rates. Traders and investors are concerned about higher interest rates in the U.S., which now seem likely amid the highest inflation in years. Of urgent concern: The U.S. Federal Reserve will begin a two-day meeting on Tuesday that is expected to end with a signal it will begin raising rates soon, possibly in March. While rising interest rates could negatively affect new-vehicle sales over time, there was no negative news about Ford itself on Monday. In fact, Ford began the day by announcing a new model: The new Bronco Raptor is … [Read more...] about Why Ford Stock Is Sliding Lower Today
U.S. automaker Ford Motor Company ( NYSE:F ) has been viewed as a dinosaur by the growth investing crowd for many years, and the stock price reflected that attitude for most of the decade. But the share price has soared by more than 140% over the past year. With such an elevated valuation, investors might be wondering whether it's about to come back down to earth, or if more good times are ahead. If electric vehicle (EV) leader Tesla 's premium valuation is any indication, investors could see more gains from Ford. Here are three reasons why. Image source: Getty Images. 1. Ford has gotten serious about electric vehicles It's probably fair to say that legacy automakers were skeptical of EVs back when Tesla was a young, struggling company. Their delayed response helped Tesla build a significant lead in electric, and now many formerly skeptical competitors are scrambling to catch up. Globally, automakers could spend more than $500 billion by 2030 to ramp up their … [Read more...] about Should You Invest in Ford in 2022?
The stock market is having a rough start to 2022. The technology-centric Nasdaq 100 index is down 14% year to date at Monday's prices, and we're not even four weeks into January. But some individual stocks have suffered far worse , losing 50% of their value (or more) and falling deep into bear-market territory. Buy now, pay later (BNPL) company Affirm Holdings ( NASDAQ:AFRM ) is one of those stocks, declining 70% from its all-time high closing price of $168.52 set on Nov. 4, 2021. But the pessimism might have gone too far since Affirm's new deals with Amazon and Shopify could deliver growth in its business of over 6,000%. Here's how. Image source: Getty Images. The consumer credit revolution The consumer finance space is constantly evolving, with new and innovative companies rushing to capture young borrowers with shifting spending habits and an appetite for technology-enabled services. Large banks have always dominated consumer credit, but their … [Read more...] about 1 Growth Stock Down 70% to Buy Hand Over Fist in 2022
What happened Well, it's looking like another miserable day for stock markets on Monday, with the Dow down 1.7% and the tech-heavy Nasdaq off 2.6%. Once again, semiconductor stock Nvidia ( NASDAQ:NVDA ) is leading tech stocks lower as its shares had slumped 6.6% by 10:25 a.m. ET today. The most obvious answer is that investors are favoring "cheap" semiconductor stock Intel ( NASDAQ:INTC ) over "expensive" semiconductor stock Nvidia today, especially because Intel had some good news to report last week. Image source: Getty Images. So what On Friday, Intel announced that it has chosen to locate two new chip factories near Columbus, Ohio, picking the city from a field of 40 locations that had competed for the investment. Construction will commence later this year, and production should start in 2025. And as The Wall Street Journal, reports, the $20 billion that Intel will be investing in Ohio is only part of a $100 billion investment plan for building out … [Read more...] about Why Nvidia Stock Just Crashed 6.6%
It's been a challenging few weeks for investors. Cryptocurrency prices have plunged recently, and the Federal Reserve also announced it will be raising interest rates in an attempt to rein in surging inflation. Amid all this uncertainty, stock prices have also been falling. The S&P 500 and the Nasdaq both finished their worst week since March 2020, and some investors are concerned that a crash could be looming . When the market is shaky, it can be tempting to withdraw your money in an attempt to salvage your investments before prices drop even further. However, there's a better strategy that could help you avoid losing money during a market crash. Image source: Getty Images. Will the stock market crash? One of the most intimidating aspects of the stock market is its unpredictability. Nobody -- even the experts -- can accurately predict exactly what the market will do. Though stock prices have taken a tumble recently, nobody knows for certain whether a crash is on … [Read more...] about Stock Market Crash: What Should You Do With Your Investments?