When investing in something like the FAANG index or Google you're not betting on how the companies will do. Predictions like "Google is going to do well in the future and continue to grow" are not useful for making investments.
You're making a bet that Google will do better than everyone else thinks it will. And even more than that. You're betting that it will do so by a wider margin and/or with a higher likelihood than the available alternative investments you could make with that same money.
And even more than that, you're betting that Google will do better than everyone thinks it will and that the market will
acknowledge this the way that you expect and the price will adjust accordingly in a time frame that is relevant for your investment goals and solvency.
Comments
When investing in something like the FAANG index or Google you're not betting on how the companies will do. Predictions like "Google is going to do well in the future and continue to grow" are not useful for making investments.
You're making a bet that Google will do better than everyone else thinks it will. And even more than that. You're betting that it will do so by a wider margin and/or with a higher likelihood than the available alternative investments you could make with that same money.
And even more than that, you're betting that Google will do better than everyone thinks it will and that the market will acknowledge this the way that you expect and the price will adjust accordingly in a time frame that is relevant for your investment goals and solvency.
You are betting more money will come in from new investors or more money from existing shareholders. You are betting people won't sell.
You are not betting on what will think in the future because market forces are bigger than will.