“I’m a cautious person — that’s why I bought gold.”
This comment appeared the other day on my article about investments.
Although it was in this article that I explained in detail why you should not buy gold (as well as other precious metals).
The only purpose of gold is to be a “diaper for adults” who were afraid of the crisis and bought gold at the highest price.
After which its value will obviously decrease, leaving “cautious” people “upside down” and at a loss for a long time.
1) Stocks bring the highest income compared to other investment options.
Over a long period of time, the stock market has been growing steadily, raising stock prices higher and higher.
And what is extremely important for an investor is that it stays ahead of the inflation rate.
But the price for high returns is the investor’s willingness to regularly “endure the pain” of high volatility.
2) Investing in stocks will sometimes fall so deep that you want to cry.
However, if you can withstand the psychological pressure of general panic and the “soul-tearing” sight of a big red “minus” in your investment accounts, then you will be very well rewarded.
Over the long term, stocks have historically performed the best financially.
And not gold, real estate and other popular options that are so beloved by beginners (but bring very mediocre results).
3) What stocks should I buy?
Never buy shares of individual issuers.
Always buy “in bulk” shares of the most powerful companies in the country.
This is done by purchasing index funds (which consist of shares of key issuers).
4) Invest in shares of companies that have stood the test of time and crises
As mentioned in the previous paragraph, these are the largest and most powerful companies in the country.
Do not invest in start-ups or small and medium-sized businesses.
Alas, their ability for business longevity leaves much to be desired.