Why stocks?
Stocks are but one of many possible ways to invest your hard-earned money.
Why choose stocks instead of other options, such as bonds, real estates, bank savings accounts, rare coins, or antique sports cars?
The reason that savvy investors invest in stocks is that they provide the highest potential returns.
Over the long term, no other type of investment tends to perform better.
Downside
On the downside, stocks tend to be the most volatile investments.
This means that the value of stocks can drop in the short term.
Sometimes stock prices may fall for a protracted period.
Bad luck or bad timing can easily sink your returns, but you can minimise this by taking a long-term investing approach.
Returns
There is also no guarantee you will actually realize any sort of positive return.
If you have the misfortune of consistently picking stocks that decline in value, you can lose money, even over the long term!
Education
By educating yourself, you can make the risk acceptable relative to your expected reward.
With knowledge, you can pick the right businesses to own and to spot the ones to avoid.
This effort is well worth it, because over the long haul, your money can work harder for you in equities than in just about any other investments.
Additional notes:
A slightly higher return in your investments can lead to dramatically larger dollar sums for whatever your financial goals in life may be,
Investing in stocks is an intellectual exercise and requires effort, but it is an effort that can bear many fruits.
Among the potential investments one can make, stocks provide the largest long-term returns, but they also have the largest volatility.
Stocks are ownership interests in companies. They are not simply pieces of paper to be traded.
Stocks are but one of many possible ways to invest your hard-earned money.
Why choose stocks instead of other options, such as bonds, real estates, bank savings accounts, rare coins, or antique sports cars?
The reason that savvy investors invest in stocks is that they provide the highest potential returns.
Over the long term, no other type of investment tends to perform better.
Downside
On the downside, stocks tend to be the most volatile investments.
This means that the value of stocks can drop in the short term.
Sometimes stock prices may fall for a protracted period.
Bad luck or bad timing can easily sink your returns, but you can minimise this by taking a long-term investing approach.
Returns
There is also no guarantee you will actually realize any sort of positive return.
If you have the misfortune of consistently picking stocks that decline in value, you can lose money, even over the long term!
Education
By educating yourself, you can make the risk acceptable relative to your expected reward.
With knowledge, you can pick the right businesses to own and to spot the ones to avoid.
This effort is well worth it, because over the long haul, your money can work harder for you in equities than in just about any other investments.
Additional notes:
A slightly higher return in your investments can lead to dramatically larger dollar sums for whatever your financial goals in life may be,
Investing in stocks is an intellectual exercise and requires effort, but it is an effort that can bear many fruits.
Among the potential investments one can make, stocks provide the largest long-term returns, but they also have the largest volatility.
Stocks are ownership interests in companies. They are not simply pieces of paper to be traded.
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