Tuesday 2 February 2010

Always stick to good companies. Invest cleverly into these and these only.

When you buy shares, you own part of the company, including its assets.

Although the value of money decreases with inflation, your investment in a good company can increase as the company grows and the value of its assets increases.

Note that we say a 'good' company.

Not all companies are good companies and not all share prices will increase over time, simply because not all companies will expand and grow.

That is why it is important to be clever when you make equity investments.

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