Stock market is one of the world best inventions. It is a place for business owners and entrepreneurs to get funding to expand their business and to fuel their innovations to make the world a better place. It accelerates the growth of great businesses.
It is also a place where you, as an investor, can find your best investments. It requires relatively little physical work to generate promising returns. This is what makes stock market an attractive destination for investments.
By investing in stocks, you own a piece of the prospering business. You are a business partner, together with thousands of other shareholders, for the business that is run by savvy entrepreneurs or experienced businessmen.
Usually a business owns valuable assets like properties, brand, intellectual properties, products, lands, etc that are worth a lot money. By being a shareholder, you own a part of these assets. It is similar to indirectly buying and owning lands and properties with the exception that you don’t have to manage them yourself (sweet). It is hard to buy a land nowadays, but it is relatively easy to buy stocks.
I always dream of starting my own business. As most people know it, running a business is very risky especially for someone who has no prior experience. Most businesses fail. However, with stock market, you can be a business owner or owner of multiple businesses at the same time and also at lower risk. You can get out of a business easily at the first sight of trouble. You can’t do this when you are the actual owner of the business. Worst case, you only lose what you invest in. You get the benefit of being a business owner without bearing the full risk of running a challenging business.
Your stock investments are hedged against inflation. Businesses raise prices to cope with inflation. They are always ahead of the inflation. In other words, inflation actually protects your investment.
Businesses take time to make profit. Plants need time to grow, so as businesses. Developers take years to construct buildings, manufacturers take time to setup their factory for operation and marketing and selling, etc. There is no way around these facts. Therefore, it is wise to go long term when investing in stock market.
You can’t produce a baby in one month by getting nine women pregnant. – Warren Buffett
What is the best time to invest in stock market? The best time to invest is when you have the money. The amount of investment does not need to be big to get started.
The best time to invest is when you have the money. – John Templeton
So, do you have the money to invest in the stock market?