Final answer:
The most common winning investment strategy for new investors is value investing, due to its focus on long-term wealth and lower risk profile compared to riskier strategies such as day trading. It emphasizes buying undervalued stocks and holding onto investments rather than attempting to outperform the market through frequent trades.
Step-by-step explanation:
The most common winning investment strategy for new beginners is often considered to be value investing. When looking at the expected values for each investment, the safest investment tends to have the lowest probability of loss, which, according to the given information, is the third investment. In contrast, the riskiest investment is typically the one with the highest probability of loss, suggesting the first investment would fall into this category. Additionally, historical data shows that trying to outguess the market is overwhelmingly unsuccessful, with many mutual funds failing to perform better than the market average.
Those new to investing are advised to focus on long-term wealth accumulation, rather than seeking out immediate gains through riskier activities like day trading. Instead, a strategy such as value investing, which involves selecting stocks that appear to be trading for less than their intrinsic or book value, has been deemed more viable for the majority. Financial wealth can be accumulated by following sound financial principles including obtaining additional education, saving early, and investing prudently.