Welcome to Long-Term Mindset, the Wednesday newsletter that helps you invest better.

Today's Issue Read Time: <3 minutes

Lesson: Forrest Knows Best
Timeless Content: It's different this time
Thread: Investing lessons from Wall Street analysts
Resource: Calculating your future 401K balance
And more!

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Friends,

On July 6, 1994, Forrest Gump was released in American movie theaters. It would spend the next six months on the box office's Top Ten movies -- a run eclipsed only by E.T.

In one of the movie's key montages, Forrest spends over 3 years running back and forth across the United States. While many characters question why Forrest is running, it's clear to viewers that after his (eventual) wife disappeared, Forrest is finding something out about himself.

Knowing that, it would seem ridiculous to say: "Forrest, why didn't you just run around your old high school's track for 3 years? You would have gotten the same physical benefit?"

Once every month, Stoffel publishes his portfolio and returns on X. He's done well: he's far outpacing the S&P 500, Dow Jones Industrial Average, and the Nasdaq Composite.

But many are quick to point out that an investment in the Nasdaq 100 (QQQ) -- the largest 100 non-financial stocks listed on the Nasdaq -- would have basically gotten the exact same returns without all the extra effort.

It's important to note that these people are not wrong. If your primary goal is simply to get a solid return with the least amount of effort, investing in QQQ (or any other low-cost ETF) is absolutely the way to go.

But we know many of you are here because you are interested in individual stocks and have your sights set on the long term. If that's the case, then there are innumerable rewards to this pursuit: you learn about the world, the economy, and, most importantly, yourself.

And if you do it well, you become financially independent along the way.

There are few activities that offer all of these benefits. So while we'll never argue against ETF investing, we also know the lasting benefits that come from investing in individual stocks. Over the long run, they pay the greatest dividends

- Brian Feroldi, Brian Stoffel, & Brian Withers

P.S. 👨‍🎓 The next cohort of our Valuation Explained Simply course starts on May 6th! Click here to enroll with a $249 "Friends of the Brians" discount.

One Simple Graphic:

One Piece of Timeless Content:

"It's different this time."

As investors, we've been told to ignore that advice. But every once in a while, there's an argument to be had that things have changed. Howard Marks, co-chairman of Oaktree Capital, penned a recent blog titled Sea Change. He explains why stocks may be in for a rough ride ahead and bonds are starting to become attractive.

One Thread:

Matthew Cochrane

@TheMattCochrane

Mark Mahaney has covered Internet stocks on Wall Street since 1998.

He is in the top 1% of all professional analysts, w/ an avg annual return of 26.9%.

In his book, Nothing But Net, he shares these 10 tech investment lessons he's learned after 25 years of making calls.

8:10 AM • Mar 30, 2024

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One Resource:

If you live in the US, taking advantage of your corporate 401K match is the closest thing to free money that we've encountered. Check out this 401K calculator from Nerdwallet to see how you can juice your retirement savings.

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