Most people lose money in the stock market because they’re paying for the foam instead of the beer. 🍺📈 ⠀ Every stock price is made of two things. The beer is the real value of the business, meaning what it owns, what it earns, and how much it’s likely to grow. The foam is everything else. Hype, headlines, fear, excitement, and whatever everyone happens to be feeling that week. ⠀ The beer changes slowly. A good company keeps making money year after year whether people are talking about it or not. The foam changes constantly. One viral post can puff it up overnight, and one scary headline can make it collapse just as fast. ⠀ That’s why so many people buy at the top and sell at the bottom. They see a stock flying, jump in because everyone’s excited, and end up paying mostly for foam. Then the excitement fades, the price drops, and they panic and sell, often right before it recovers. ⠀ The best investors in the world play it the opposite way. Warren Buffett built one of the biggest fortu...