Investing Isn’t Easy: Headlines and Fairytales
When it comes to investing, stories can be powerful. A good story can make people excited, confident, or even a little fearful — and those emotions can move the market just as much as company performance does. When that happens, people start buying or selling based on headlines and hype rather than what a company is actually worth. And truth be told, almost everyone falls for this sometimes — from day traders to people managing their own retirement accounts.
The GameStop Story
A great example of this happened with GameStop (GME) in early 2021. At the time, many investors believed the company’s business was struggling and started betting against it — a move called “shorting.” Then, a group of regular investors on social media decided to team up and buy the stock, pushing the price higher and forcing those who had bet against it to buy shares back at even higher prices.
This caused the price to skyrocket — not because GameStop suddenly became more profitable, but because of excitement and momentum. On January 27th, 2021, the stock opened at about $37, surged to $483 during the day, and fell back to $87 by the market close. Just a few weeks later, it was trading near $11. The story was thrilling, but it didn’t last.
Modern-Day Examples
Even today, we’re still seeing investing driven more by stories than results.
Take Oklo Inc. (OKLO), a company working on advanced nuclear energy. It’s become one of the best-performing stocks this year, valued at around $26 billion, with zero revenue. Another example is Fermi America (FRMI), a real estate investment trust (REIT) worth about $17 billion that owns no properties, has no tenants, pays no dividends, and also generates no revenue.
Together, these two companies are valued at over $40 billion — almost as much as Ford Motor Company, which made roughly $185 billion in revenue over the last 12 months. The difference? Ford has a long history of producing cars and generating real earnings. Oklo and Fermi America are still running on promise and potential — or, as some might say, on a good story.
So, What’s the Lesson?
This doesn’t mean those companies are good or bad investments. Some stories do have happy endings. But when people invest based only on headlines or hype instead of real results, prices can swing wildly — and that kind of rollercoaster can be tough on both your wallet and your nerves.
That’s why having a financial advisor can make such a big difference. A good advisor will help you stay grounded, build a well-diversified plan, and avoid chasing whatever’s popular this month. Investing isn’t about luck or catching the next big thing — it’s about patience, discipline, and sticking with a strategy that fits your goals.
The market will always have new stories. The key is finding an advisor you can trust to cut through the noise and keep you focused on long-term goals — not short-term fairytales.