“Someone’s sitting in the shade today, because someone planted a tree a long time ago.”
We have always searched for ways to earn more; to make our money grow.
It is in our nature to desire to earn bigger amounts of money to supplement what we earn from our jobs, so that we can live comfortably; do what we want to do, when we want to; and ideally, be able to share our blessings with others; also, help them in any way we can.
We were raised to believe that putting our hard-earned money in the bank was the way to make our money grow because of the interest it earns every year.
That is why a lot of us still have savings accounts where their cash allotted for “savings” goes to.
Now don’t get me wrong… this is perfectly fine.
Having money in the bank is important because it is a source of liquid cash—money is readily available when you need it.
Plus, they are the preferred go-to institution when we need financing—when we purchase property (house, car, land); when we scale up an existing business, or renovate a property; they offer some of the lowest interest rates for loans.
So, banks are truly beneficial for us.
If we want our money to grow; there are other channels wherein our cash can earn more than a bank’s savings account interest.
For more or less 1% interest per year that they offer for your money; Investing in Stocks can fetch you anywhere between 5% to 20% earnings per year…
That got your attention; right?
Banks know this, that is why they, too, offer investment accounts to their clients.
What is Stock Investing?
The following is a simple guide on how to invest in stocks for beginners like I was a few years ago, when I was searching for ways to increase my savings at a faster pace…
Put simply; Stock investing is a method of earning by buying shares of stocks of various companies.
The world’s richest people utilize the power of investing in stocks to build their fortune. Warren Buffett, probably the world’s most famous investor, made his BILLIONS through investing in the stock market. To-date; he is the third richest man on the planet.
“A “stock” is a share of the value of a company which can be bought, sold, or traded as an investment”. (As defined by Merriam-Webster)
Think of a company as a pie. This is then divided into many (millions) portions (shares of stocks) that have a corresponding price.
To own a piece of the pie; one must buy a portion of it at the price the company sells it for. Buying it makes you an investor or shareholder in that company; or to a more distinctive note; a part-owner of it.
A certain number of shares was required to be able to buy into that company. This is called a Board Lot. Different companies have different board lots. Some as low as 5 shares; others at 100 or 1000.
Owning a portion of a company… sounds good, right?
Now, some pies are better than others. They are the well-established companies that enjoy high public confidence and stability. Also known as “blue chips”.
One distinct characteristic of these pies is that, like good wine, they get better as time goes by… hence, their price increases.
It is at this moment that you, as an investor, rake in an earning directly proportional to the number of shares you bought. The more you have, the more you earn.
In this article, we will focus on the long-term approach to earning in the stock market. This approach, officially known as the “buy and hold” investment, yields the highest returns.
As the name suggests; it involves buying shares of stocks of a company and not selling it (holding) for a long time, until its price increases or appreciates; which is the trend of blue chip stocks—these businesses grow and expand over time, and with its growth, comes the increase in stock prices. This translates to earnings in your investment.
So, “how do I invest?”; you might ask?
Up until several years ago, investing in the stock market was a privilege reserved for those with a lot of money. This was because the only way to invest in it was through a stockbroker—a person whose job is to buy and sell shares of stocks for other people.
If one wanted to avail of his services; he had to have a bit of money to pay for the guy’s fee; since his expertise will allow you to earn by buying into shares of huge, established companies. So naturally, he would peddle his services to people who can afford him.
But because of the internet; the stock market was made accessible to everyone by means of online brokerage firms.
These firms allowed regular people like you and me to buy and sell shares of stocks of the same “blue chip” companies and many others that only the elite once had access to.
One such online broker is COL FINANCIAL, the #1 Online Stockbroker in the Philippines; established in 1999.
Learning how to invest in stocks is made easy through them by readily available seminars and their sharing of knowledge and expertise by means of their user-friendly online trading platform.
Best of all, regular joes like me can open an account and start investing with as little as ₱5,000. Everything you need to know about opening an account is at www.colfinancial.com. Click the link and start investing in stocks today.
We may not get to be as rich as Mr. Buffett; but investing in stocks is surely one of the best and fastest ways to make our money grow.
Too busy to learn the ropes of buying and selling stocks?
Can’t decide on which companies to buy into?
Too much information to digest?
Whereas learning how to invest firsthand is paramount; acting now is also important. So, here’s a link that you can use to safely guide you through the process of choosing which stocks to buy and when to sell, plus a whole lot more:
Visit The Truly Rich Club.