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The Unicorn Investing Mentality

Let’s talk about your stock portfolio. Is it doing what you want it to do?

Probably not.

It’s not just your portfolio. It’s the stock market itself that’s the problem.

You see, the stock market is broken… and so is our approach to investing.

The stock market is touted as the way for investors to build a portfolio of wealth so they can retire early. But, for most people, the stock market is a speculative gamble at the best of times.

Sure, experts will tell us to buy and hold, or acquire funds instead of stocks, and maybe some of your portfolio is made up of those holdings…

But chances are there’s a bunch of other stuff in your stock portfolio that isn’t as steady as those – stocks that are more volatile and at risk of losing serious value.

Are we right?

A lot of investors, even the most conservative, end up acquiring stocks from time to time that aren’t always a good fit… and sometimes these stocks end up doing unexpected things.

So we sell these stocks to protect our losses, swear we’ll never invest in anything so crazy again, but then find ourselves doing the exact same thing a few months or years down the road.

If that describes your investing experience, you’re not alone. There are a lot of investors who do that (me included when I invested in stocks and worked in Wall Street).

The reason this happens so frequently is simple: it’s what we call “the unicorn mentality.”

The unicorn mentality works like this…

We know we’re supposed to build a portfolio of diversified, safe, blue chip stocks (at least that’s what the experts say)…

But so few investors do that. Instead, they end up investing in riskier stocks hoping for a unicorn stock that will start rising dramatically the moment they buy it.

Most stock market investors know they should be investing in steady blue chips. Problem is, they don’t.

  • Many of these blue chips stocks aren’t very affordable so you can’t diversify – you end up sinking all your money into just one stock.
  • You don’t have the time to do any due diligence anyway.
  • They’re boring… and no one likes boring.

Instead, investors adopt the unicorn mentality: you buy a stock that has some rumor or news on it that makes you think the stock is going up. So you buy it and hope that it goes up big time.

People LOVE unicorns – those unexpectedly awesome stocks that were the underdogs and become high-performers. Not only is this a great way to rapidly grow your wealth, it’s also very entertaining to boast about with coworkers around the watercooler…

When it works.

Problem is, it doesn’t work that often.

The media reports on these unicorns so often (because they’re entertaining) that it makes us think they happen every day to regular investors.

In fact, it’s like the lottery: the odds of winning are astronomical but the media loves reporting about it so it tricks people into believing that it’s more likely than it is.

Why do people insist on investing in these unicorns? We love a good story, we don’t have a huge amount of capital, and we want to dramatic increases to build our portfolio.

Friends – that simply won’t happen very often in the stock market. Too many people invest and hope that they’ve discovered a unicorn.

When we woke up to this reality, it changed how we viewed investing – and that changed all of our lives.

Instead of looking for unicorns, we’ve decided that “boring is better” and started acquiring turnkey investment properties. These start delivering a predictable return right from day 1, without any real effort on our part except to check in with the property manager from time to time.

This freed us up from feeling like we needed to find THE unicorn stock that would make us rich. Instead we could focus on more important things in life because we knew portfolios were growing without worrying or gambling.

If you want to stop worrying or gambling with your future, and if your unicorn investments haven’t turned out the way you want, then get in touch with American Wealth Builders and let’s see what a turnkey investment property can do for you.


Your American Wealth Builders Team
Contact Us: 561.408.0880

About American Wealth Builders

American Wealth Builders helps first-time and seasoned investors to build and diversify their investment portfolios by delivering industry-leading step-by-step service so clients simply pick up a phone for authoritative guidance on taking the next step.