There are many reasons why you would choose to invest in the stock market or invest in shares.
When buying a share of a single company you are buying a small piece of its assets and property with securing a small part of future profits.
Instead of starting your own business with your own money, you can actually invest in someone else’s. That’s someone else may have different or better skills than you may have been doing its business for many years and has built up expertise in the area.
When buying a share in the company you are effectively buying a small percentage of all of that.
Importantly that company also has cash flow that will produce future profits, and those future profits will provide dividends which is income for you as a shareholder.
As someone who is looking to improve their future, from a financial perspective, the easiest way to do it is to invest in someone else’s business and you can do that for a very small amount of money and you can also do it very quickly.
Instead of you working hard to improve your financial future it is possible to outsource that to a single share.
Please remember I’m not talking about speculation here. I am talking about you making an investment decision in your future.
Of course there are no guarantees. But there are no guarantees anyway. Whatever you do with your money there are absolutely no guarantees.
So, instead of buying an extra drink in the pub on Friday evening take that money you’ve saved by going home half an hour earlier and invest that small amount of money into shares of the pub chain that you have just left.
Perhaps even buy shares in the supermarket that you have just shopped in. Or the bank that holds your current account.
With the modern app based providers, you can make an instant decision to invest in the businesses that make sense for you.
Perhaps you’ll buy shares in the firm you buy products from, perhaps you will buy shares in a business that you know and understand.
If you use the products and services, and like them – so will others. Making investment decisions like this is a good starting point.
There is no need to make this more complicated than that.
Taking a Ten Year View
Let’s say that in 2012 you thought that selling online might be a good thing. So you chose the largest of these Amazon.
End of November 2012 it had a share price of $11.30 and on the 21 October 2022 after the falls share price was $119. Put 10 in get 100 out.
This is why investing in shares makes sense for creating real wealth.
Over a similar period Tesco didn’t do quite so well, but the shares have paid a dividend every year and at the moment it’s over 5%.
By putting a small amount of your available money into either of the companies means you would have made money.
Both have a strong retail position, a solid customer base. And own property and assets. Each share you buy means you get to own a small percentage of that.