Advantages of Stock Market Investing
Why I Love Stock Investing So Much
Summarized OverviewIn this article you will find information about reasons to why invest in stock market than other investment options, historical stock market performace from 1926 to 1999, short comparison to other investment vehicles, namely mutual funds, real estate and own a business.
Three Reasons Why I Invest in Stock Market
This is the major reason to why invest in stock market. Building own business might be your ambition, especially if you are an employee like me. But no matter how big or small the business you are going to build, it require A LOT of commitment, time and money.
You can buy more of the same stock if you find it profitable and undervalued. On the other hand, you can sell some or all of them if it is overvalued or the company losses money. Depend on your stock investing strategy, this flexibility can help you achieve your financial goal faster.
Unlike if you had your own business, even if it losses money, you have to stick with it and struggle to make it profitable to cover your ongoing overhead costs. Same goes to real-estate. If you made mistake since the first day you own the properties, you'll end up losing more and more money paying the mortgage with no rental income to cover.Advantages of Stock 3: Can Do-It-YourselfI can analyze stock profitability, track stock performance, call my broker for transaction and organize my stock investing strategies all by myself. I just have to catch up with few financial ratios either from analyst reports, business magazines, local newspapers or simply from myannual reports collection.
Historical Stock Market Performance
The average stock market is growing over time. Even excludingdividends paid, bonus issue or right issue, the stock market still able to grow 11 to 18 per cent per annum. Cool huh? Can you imagine if your stock has above average performace? Believe me, you can reach even 35 per cent return!