At some roulette tables, they display "hot" and "cool" numbers to show what people have been winning and losing on throughout the night. Of course, we all know how this ends most of the time. While there are exceptions, in the long run, the house always wins. Using "hot" numbers every time usually doesn't result in consistent winnings for the player.
 
And unfortunately, people often use this same strategy when it comes to investing. They'll look at stocks that have recently performed really well, like Tesla or Apple, then try to get it on the action.

In the end, the most prudent approach is a broadly diversified strategy that not only includes these companies, but also includes thousands of other companies. This would include smaller companies that are in the early growth stages (i.e. Apple before they were "Apple"). That way, when these companies do take off during the 10 years prior to making it in the top 10, you get the reward, as opposed to chasing that return after the fact.

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This podcast is not intended to provide financial or tax advice. The information, services and other content provided on and through this podcast, including information that may be provided in the show notes (directly or via linking to third-party sites), are provided for informational purposes only. Please consult with your tax, investment or other financial professional regarding your personal financial situation.