Part 7/10:
Collins explained that index funds harbor a built-in safety mechanism and intrinsically adapt to market changes. He highlighted the great diversity of investments held within an index fund and the statistically proven stability they yield over time. By focusing on the broad stock market rather than individual securities, investors benefit not only from stability but also from the spontaneous growth of innovative companies over time.
Undeniably, Collins brought the conversation to modern financial trends, addressing the fervor surrounding cryptocurrencies and alternative investments. He classified these speculative investments as inherently risky, arguing that true wealth comes from investing in businesses creating real value for society.