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.
Keep INVESTING Simple and Safe (KISS) ****Investment Philosophy, Strategy and various Valuation Methods**** The same forces that bring risk into investing in the stock market also make possible the large gains many investors enjoy. It’s true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!****Warren Buffett: Rule No. 1 - Never lose money. Rule No. 2 - Never forget Rule No. 1.
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