Stock Investing For Dummies, 6th Edition

Introduction

I am thrilled that you have the 6th edition of Stock Investing For Dummies, and it is a privilege once again to be the author. I recall finishing the 1st edition literally the night before my son Adam was born in March 2002, and this sixth go-round comes as the stock market enters exciting economic and political territory (2020 is a presidential election year, as you know).

The stock market ended 2019 with the Dow Jones Industrial Average, S&P 500, and Nasdaq all in record territory. As always, no one can tell for sure if 2020–2021 will see new record highs or if a market crash or bear market is near, but if you choose your stocks wisely, you will continue to prosper and make more gains. I think that “choosing wisely” says it all — and it’s something this edition strives for. Yes, I do expect bumps and bruises along the way — market pullbacks, crashes, corrections, fabulous up days, and scary down days — but that means that focusing on the stocks of quality companies and exchange-traded funds (ETFs) is more important than ever. Remember that had you bought quality stocks right before the 2008 crash, today you would be sitting on fantastic total returns (capital gains and dividends, too) in spite of that ugly and catastrophic bear market event. So be of good cheer — prudent, long-term investing (versus trading, speculating, or guessing) will have you coming out ahead and beating those investors who didn’t read this book!

Successful stock investing takes diligent work ...