If we look back at the past, even the stocks that have earned the most would not appear to us as “ideal” investments.
Analyzing the past can be a great exercise in understanding things that would not otherwise be so clear.
How many of us have thought it would be great to have a time machine and go back 20 years to buy all the stocks that have seen tremendous growth?
Unfortunately, as of today (January 11, 2025), the time machine has not yet been invented.
The reality is a bit different: when we study the charts, we realize that even the stocks that have earned the most over such a long period have faced moments that would have made them unattractive.
Let’s remember: growth is never linear.

If we look at the shares of the S&P 500 and select those that have earned the most since their debut on the stock market, we discover that there have been many occasions that seemed to mark the end of those stocks.
For example, one of the best-performing shares of the S&P 500 is Netflix (NFLX). From its IPO in 2002 to January 2025, its increase was +149,260%.
$1,000 invested in 2002 would have grown to $1,492,600 in 2025!
These are the numbers that make beginners (and even the most experienced investors) dream of getting rich by investing little money in a few stocks — and without any problems.
The reality, however, is very different.
In 2004, Netflix lost over 60% of its value and didn’t recover until 2009.
In 2011, it lost more than 80%, and since then, it has lost more than 30% several times.
In these situations, it is normal to ask yourself, “Has this stock come to an end? Or is it still worth investing in?”

Let’s always remember: our actions must be consistent with our strategy.
If our strategy is structured over the long term, we should not worry too much about negative months, especially when there is a long-term positive trend (the opposite is also true — the euphoria during periods of great growth is not ideal).
Negative periods could even be an opportunity to buy attractive stocks at lower prices.

The most important things to consider are:

1. Don’t get overwhelmed by emotions and always stay rational.
2. Have a strategy and remain consistent with it.
3. Conduct thorough analysis of the financial instruments we buy.
4. Diversify.

Investing is as much about patience and discipline as it is about making informed decisions. The path to successful investing is rarely a straight line, but with a well-defined strategy, the ability to stay calm in moments of uncertainty, and a long-term perspective, we can navigate the inevitable ups and downs of the market. And while we may not have a time machine, the best time to invest is always now — with the right approach.