Monday, May 20, 2013

Introduction to Upbeat Investing

If you are interested in investing, you can find hundreds of magazines and newspapers, as well as multiple television networks offering advice on what stocks to buy, when to sell and how to market time.  Do you want to invest in options?  There are load of blogs and websites that say they help you select just the right investment or trade.  

There are newsletters that you buy, websites you can subscribe to and lots of other ways to obtain advice from people who tout themselves as experts.  

Maybe they are experts.  It is likely they do know more about the market than you or I do.  But, they don't know what's going to happen tomorrow.  If they did, they wouldn't tell you for just about any amount of money.  

What the Market is Really About

What people seem to forget is what the stock market really is.   It is a place to buy ownership shares in companies.  Companies that make things, or provide services.  These companies, mostly, are able charge enough for their services to make a profit.  That profit is passed along to the owners, in the form or dividends or higher share prices.   

There is a lot more to it of course. The markets are highly liquid.  It is easy to buy and sell, and some people are in business to make money by trading the shares, without any regard to what they own.  Good for them, if it works.  (Although it rarely does, over the long term.)

Upbeat Investing

As long as companies can make a profit, the value of shares over time will increase.  Therefore, the key to profitable investing is to own companies that make money, and not to pay too much for them.  There's a lot more to be said about that.  The goal of upbeat investing to buy great companies and be happy when they generate a profit.  As a owner, some of that profit is yours.  Enjoy it.  

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