Becoming Successful Investor

Becoming a successful investor takes education, patience and maybe even a little luck. The power of investing to build wealth and achieve long-term goals has been proven time and again but not everyone takes full advantage. Investing isn't about getting rich quick, or even making as much money as possible. It’s about reaching their goals; a plan doesn't have to be fancy or expensive. You can do it alone, or with the help of a financial professional.

            Ownership investing means becoming a partial owner of a company or piece of property through the purchase of investments such as stock, growth mutual funds, and real estate which can generate earnings. With ownership investments you have influence on some decisions made about the investment. For example, if you own stock, you may vote for members of the board of directors that makes decisions about the company or make proposals concerning its operations. If you own an apartment which you rent, you make decisions such as repainting and setting the rent price. When the value of an investment goes up you share that increase with other owners, when it goes down you share the loss. Stocks are shares of ownership in a company also called equities. These enable you to share in the profits of the company.

            My purpose on investing is Stocks have given the one of the highest historical returns among the various asset classes over the long term. Many companies usually distribute a portion of its earnings to its shareholders. If you’re an investor looking for passive income, a dividend-growth strategy can pay off very handsomely. You can invest in a number of stocks in different countries, sectors, and industries which gives you various growth opportunities and diversifies your risk.  Most stocks trading on a major exchange can be easily bought and sold.  Liquidity gives investors the flexibility to convert their stocks into cash quickly if needed. Also investing enables to grow money such as stocks offers returns on your money over the long term this allows your money to build and create wealth over time. One should think about life after working years or retirement. You will still need to eat, drink, travel and enjoy life. Without having invested in the right manner, these things will be difficult to achieve and will even lead to depression. It’s important then to think about investing at an early age so that as you approach retirement, you will have enough to enjoy. I got into the stock market long ago and the goal or purpose was to build my financial security. I really gave little thought to retirement. Now that I am past the age that many retire but still working my investments are less oriented to growth stocks and more to dividend stocks. I still do buy some growth stocks but should I ever decide to retire would like to have enough dividends to live on without touching the underlying stocks.