There is something fascinating happening in the world of modern investing.
Open an app like Trading 212, Freetrade, Robinhood, or any other slick investing platform, and suddenly the stock market feels incredibly easy.
A few taps and you can own Tesla. Nvidia. Palantir. Apple. Bitcoin-related stocks. Some tiny company you saw mentioned on X by a dodgy post with a suspicious number of rocket emojis. It all feels accessible.
And to be fair, that is a good thing. Investing should be accessible. Ordinary people being able to buy assets, build wealth, and avoid being completely dependent on cash savings is a huge positive.
But there is a problem.
A lot of first-time investors are not starting with a plan. They are not starting with asset allocation. They are not thinking about risk, fees, diversification, time horizon, or what they are actually trying to achieve.
They are going straight for individual shares.
Not because they have studied the balance sheet.
Not because they understand free cash flow.
Not because they have built a valuation model.
But because they want action.
The market is not a fruit machine
In my opinion, many new investors do not really want to invest. They want to win, which is a very different thing altogether.
Investing is about building wealth over time. It is slow, repetitive, and often quite boring. You contribute money regularly, keep costs low, diversify properly, and let time do the heavy lifting.
Trying to “win” is different. That is when people start asking:
“What stock will double?”
“What is the next Nvidia?”
“Should I put everything into this company before earnings?”
“Is this penny stock about to explode?”
This is where investing quietly slips into gambling with better branding. The stock market is one of the few places where people with no experience arrive and immediately choose the hardest difficulty setting.
Imagine someone who has never played squash walking onto court and asking to start against a county player. You would politely suggest they learn how to hold the racket first.
Yet in investing, people often skip the basics and head straight for stock picking.
To be clear, there is nothing wrong with owning individual companies. Plenty of serious investors do it. The issue is not the asset, the issue is the process.
Buying a company because you understand it, have researched it, know the risks, and are prepared to hold it through volatility is one thing.
Buying it because “everyone is talking about it” is something else entirely.
A good company can still be a poor investment if you pay too much for it. A fashionable stock can fall hard. A business you love can disappoint the market. A share price can already include all the good news before you arrive.
That is the bit many beginners miss.
They think they are buying the future, but often, they are buying the hype.
The app makes it feel easy. The market makes it expensive.
Modern investing apps are brilliantly designed. They remove friction. They make buying and selling simple. They show your portfolio moving in real time.
But that convenience cuts both ways.
When investing feels like online shopping, people behave like shoppers. They browse, click, buy, check, regret, sell, repeat.
The app might be simple.
The game is not.
Behind every share price are professionals, institutions, analysts, algorithms, fund managers, and millions of other investors trying to work out what something is worth.
You are not just buying a stock, you are entering a contest of expectations. And 9.99 times out of 10, you will lose. It is almost impossible - in fact, it is impossible, to predict what will happen on the stock market, so why bother trying? Opt for boring!
Boring is not weak
This is why boring investing is so underrated.
A global index fund is boring.
Regular monthly investing is boring.
Low fees are boring.
Rebalancing is boring.
Not checking your portfolio every 11 minutes is boring.
But boring does not mean stupid. Quite often, boring is sensible. Boring is repeatable. Boring survives. The exciting investor is always chasing the next idea.
The boring investor is quietly building ownership in thousands of companies around the world, month after month, year after year.
One looks clever in the group chat.
The other is more likely to still have a highly profitable functioning portfolio in 20 years time.
The real question
There is nothing wrong with having a small satellite part of your portfolio for individual shares, themes, wine, Bitcoin, or anything else you genuinely understand.
But the foundation matters.
Before chasing the next hot stock, it is worth asking:
Do I have a plan?
Am I diversified?
Do I understand the risk?
Could I handle this falling 40%?
Am I investing, or am I just trying to get rich quickly?
Because the market does not pay you for being entertained.
It rewards patience, discipline, risk-taking, and the ability to not do daft things with your hard-earned cash.
That might not sound exciting.
But boring is often the price of wealth.
The Compounder
Long-term investing made simple.
Thanks for reading The Compounder.
If you found this article useful, please consider leaving a comment below. I read every one.
I'm also always looking for ideas for future editions, so if there's an investing topic you'd like explained in plain English, let me know and I'll add it to the list.
Remember, successful investing isn't about being brilliant. It's about making sensible decisions consistently and allowing time to do the heavy lifting.
Until next time, keep compounding.
The Compounder is for financial education and commentary only. I am not authorised or regulated by the Financial Conduct Authority and I do not provide financial advice, investment advice, or personal recommendations. Nothing published here should be taken as a recommendation to buy, sell, hold or switch any investment, fund, pension, ISA, crypto asset or financial product. Always do your own research and consider speaking to an FCA-authorised financial adviser if you are unsure.