Building wealth through long-term investment in stocks
The world of investment in the stock market has always been surrounded by fascinating ideas, the most important of which is that you choose a specific investment from which you can make a fortune that will change your family’s future and life for decades and generations to come.
A dreamer's achievement may not be difficult or the degree of great risk. Perhaps a certain number of shares have been bought, and suddenly the value of the share doubles several times in a short period, so you own a wealth of it that was not taken into account, or maybe you invest now by buying shares as a kind of savings in a company Emerging and characterized by all elements of success to multiply with time the value of your shares time and time again.
These two methods are not a stroke of luck, even if luck has an undeniable presence. Rather, they are mainly based on the studied business approach. Here we have an investment based on a set of mathematical accounts.
How do I invest in the stock exchange?
Let's jump in time and go back to the mid-eighties of the last century, supposing for the sake of controversy that I have financial savings and be 5 thousand dollars, and instead of buying a car instead of my old car, imagine that I invested in one of the emerging companies named Microsoft after nearly thirty years will be my default profits from The amount of 5 thousand is $ 2.763,375, in which more than one million and a half dollars are worth of investment shares in Microsoft, and the rest are the profits you made during those virtual years.
So to answer how to invest in the stock market, you will find the ideal answer by taking mathematical calculations and logic into account to keep you away from the specter of loss and the risk of investing in stocks.
If we go back to our previous assumption and divided five thousand by five different investments, I will put a thousand dollars in a different investment, and with a statistical calculation that measures for me the extent of profit or possible crises that may occur on my investments, there is a high possibility that four investments will go bankrupt in the week or month after the investment, and this It is not excluded in the world of speculation in the stock market to find yourself with the possibility of earning 15% at best from these profitable thousand, meaning it will reach the amount of 275 thousand dollars.
Let us move away from this fictional example, let us return to the ground and by thinking with logic. Any business or property that you want to invest in must search for a super-guaranteed investment that guarantees your wealth in great proportions. Within the world of investment in the stock market to earn a wealth of stocks, a mathematical account is required for each A step you can take by investing in an investment portfolio.
And from it until you become rich in stocks, and you start investing in the stock market in a long-term, you must avoid entering investments that are surrounded by the risk of complete failure, then your investment must be able to withstand the stock market and overcome all the difficult periods of stagnation, lack of liquidity and even periods of recession with Years passed.
What is the benefit of long-term investment in stocks?
In the process of searching for how to become rich in stocks and investing in them, the concept of Long-Term Investing and the surrounding opinions of this concept reinforces its usefulness. Some research studies have indicated that money is gained by investing in stocks and the stock market that the people who invest projects or startups and adopt long investment The term in stocks does not hold their investments and their shares for more than two decades at best, for example, Microsoft Corporation did not exceed the long-term investment in individual shares in more than twenty to twenty-five years, i.e. until their money invested twice or three times and then sold their shares.
Starting from the studies as a whole, the long-term investment interest has been established in stocks, and it is directly linked to investing in US index funds and the many damages that affect your performance as an investor in the stock market, although the profits and returns of investment funds are not large but have reasonable growth and little risk, if you invest Through the funds you will not follow through which companies go bankrupt or which companies have a great value for their shares, rather you will get a price and profit with a net value of the assets, this is precisely what prevents the development of your understanding of the market and the choice of your strategy and where to put your money, to become rich from the stock market.
Long-term investment is the secret of wealth from the stock exchange
Yes, it is true that long-term investment is the secret of the stock market’s wealth. In examining the behavior of that group of large stock market investors who built wealth from the stock market by investing in the stock market, we find that the great majority of them did not rely on investment funds but rather followed their behavior and relied on investment Long-term in buying shares and shares in many companies, that is, to hit the rich, you must be an investor who puts your money in companies and thinks about long-term investments, not a trader that sells and buys in shares.
This difference between the trader and the investor in the stock market, which is evident from the behavior of the largest wealthy and investors of the American war market, Warren Buffett, which tells in talking about his experience of investing for more than fifty-six that she has fought four major crashes in the shares of Berkshire Hathaway whose Hathaway company whose value of shares collapsed With more than fifty percent of its value, but during the same period with difficult positions and collapses, the value of the stock rose from $ 7 to the value of $ 222250 per share, and Warren talked about it during these periods that investors who did not master the account in the game correctly had withdrawn out of fear of loss at the first A bump and this is only a tax not understanding the investment game.
What if I lose my money by investing in stocks?
Of course, you will ask me what if I lost my money by investing in stocks, and I was not lucky to choose a company that is able to continue and grow and profit, or if I am lucky and lose my money, my dear then chooses the big companies to invest in, go to those companies with multiple activities and invest in them, they will not lose Overall.
How do I find the best long-term investment?
You have to understand the following points to determine where to search for a successful investment, so I am sure that long-term investments that herald prosperity and near-certain growth will not be clear and evident to everyone, so you should study the market and research well, so choose stocks that have properties that keep them in the market for a long-term period, and of course, you have a commitment when investing Long-term with the following points:
Focus on cost, without taking too much risk or acting too fast.
Pay attention to inflation and taxes.
Know well when to sell your investment stock.
Educate yourself and gather information about all companies, their businesses, and their sources of profit.
To return to our next example from the eighties of the last century and invest in Microsoft and I decided that instead of investing in it I would buy half of $ 5,000 shares in the best-known companies at the time, which were family companies with high credibility and profits, and I took the other half and bought shares in startups (Coca-Cola, Johnson Clorox, Hershey, and of course, McDonald's) I would have thought at that moment that I would be the most failed investor as I lost half of my investment value in this emerging investment portfolio by relying on some future accounts, but between the eighties and 2019, you will find the magnificent boom in my losing stocks and the slow growth of my earnings In traditional stocks.
The future accounts of companies must be taken into consideration when making a long-term investment, even if they are sometimes reckless and crazy steps. Just choose your own and studied portfolio for long-term investment, and leave the rest of the time to increase and double your profits.
Long-term investment philosophy
In summary, and after all the previous assumptions, if you intend to build your wealth over time and make a long-term investment, then you must make simple investments that are not overrated, after making decisions and carrying out a few but structured studies.
All of your decisions may not be good, but you will have some bad experiences. Just give yourself the opportunity to recover with time by selecting your shares and the investments you are making in order for long-term investment and achieve wealth. You should go to companies producing the goods that individuals need and whose necessity will not change with time, i.e. invest. In companies that offer real products, there are no illusions and promises of instant wealth and imaginary profits.
I will not conceal from you the experience in trading, the ability to predict, and the behavior of the market. In your investment method, fundamental transformations will give you immediate profits, and it is not the appropriate way to gain a sustainable and lasting wealth from the stock market with the passage of time and become rich from the stock market.