Why Invest In Stocks

Stocks are but one of many ways to get your hard-earned money invested. Why choose stocks rather than other choices, like bonds rare coins or vintage sports cars? Very clearly, the reason savvy investors invest in stocks is that they offer the highest possible returns. And no other type of investment has the potential to perform better over the long term.

Stocks happen to be the riskiest investments on the downside. That means the stock value will fall in the short term. Often stock prices can decline even for a prolonged period. The 10-year return for the S&P 500, for example, was slightly negative as recently as late 2010, largely due to the 2008 financial crisis and the bursting of the tech bubble in the early 2000s. Bad luck or bad timing will quickly lower the returns, but with a long-term investment strategy, you can mitigate that.

There's also no assurance that you'll actually achieve any kind of positive return. If you're getting the misfortune of constantly picking stocks that fall in value, you might lose money, even in the long run!

Clearly we think you can make the risk appropriate compared to your potential benefit by training yourself and using the skills in this Investing Classroom. We're going to help you pick the right businesses to own and help you find the ones you want to stop. Once, this commitment is well worth it, because your money will work harder for you in equities over the long haul than in just about any other project.