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Why Invest in Stock Market When There are Other Investment Options?

Advantages of Stock Market Investing

Why I Love Stock Investing So Much

Summarized Overview

In 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.
Happy Investing!

Three Reasons Why I Invest in Stock Market

Advantages of Stock 1: Own Profitable Businesses

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.

With stock, owning a business is a lot easier, and cheaper too!. Just imagine, owning a business empire without ever showing up at work. You just have to sitback and relax, watch your company growing from time to time.

By the end of the year, you can collect checks from dividend issued. As your company grows, your stock valuation appreciates as well. You will be amazed on how much return you'll be getting by just holding them as long as possible. Does it sound too good to be true?

Advantages of Stock 2: Flexible Holding Position

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-Yourself

What is your primary investment options? Cash Deposits Stock Market Mutual Funds Own Business Real Estate Others

I 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.

With good time management and focus on your research, all these processes are not require a lot of commitment, really. You don't have tenant to manage, supplier to deal with or customer to face in stock investment.

Unlike mutual funds, you have an absolute control over your investment decision. I can still have fun with my families and concentrate on my working career but make more and more money.

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!

This is why invest in stock market is a very attractive options.

http://www.stock-investment-made-easy.com/why-invest-in-stock.html

The Road to Building Wealth

The Four Principles

1 . Invest regularly.
You can begin by investing as little as $25, $50 or $100 a month. As your
resources grow, your monthly investment can grow. The important thing
is to invest on a set schedule over time.

2 . Reinvest earnings, dividends and profits.
If a stock pays dividends, reinvest them to buy more shares. If you sell
a stock, apply the proceeds to another investment.

3 . Invest in quality growth stocks and mutual funds.
With the right growth stocks and equity mutual funds, you can achieve
goals like doubling your money every five years with an acceptable
amount of risk.

4 . D i v e r s i f y.
A balanced portfolio includes companies of various sizes from different
industry segments and mutual funds from various categories. This kind of
diversification helps reduce risk and broaden investment opportunity



Also read:
Searching for Good Quality Growth Companies
http://www.investlah.com/forum/index.php/topic,23855.0.html

Investor of marketable shares has a double status, with the privilege of taking advantage of either at his choice.

The impact of market fluctuations upon the investor’s true situation may be considered also from the standpoint of the shareholder as the part owner of various businesses.

The holder of marketable shares actually has a double status, and with it the privilege of taking advantage of either at his choice. 

1.  On the one hand his position is analogous to that of a minority shareholder or silent partner in a private business.

• Here his results are entirely dependent on the profits of the enterprise or on a change in the underlying value of its assets. 
• He would usually determine the value of such a private-business interest by calculating his share of the net worth as shown in the most recent balance sheet. 

2.  On the other hand, the common-stock investor holds a piece of paper, an engraved stock certificate.

• This stock certificate can be sold in a matter of minutes at a price which varies from moment to moment—when the market is open, that is—and often is far removed from the balance sheet value.