Why invest in stocks?

Jagdip Sanghera
3 min readAug 16, 2020

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Hi, straight to it- why should you invest in stocks over other investment options?

What makes stocks stand out as an investment?

What do stocks offer that other investments don’t?

Stocks are seen as a risky investment, which is not true- risk simply comes from not knowing what you are doing. If one has a good understanding of the stock market, stocks are a very good investment vehicle to make money. You can invest with little to no risk by simply investing in index funds or etf’s and these allow your money to grow with the market as a whole, with little to no risk. You can perform well by simply applying simple investment strategies to your approach.

Stocks can allow you to grow your money with ease and at a strong rate with little to no risk- as long as you understand the market.

You can apply this rule to your investing by simply buying what you understand and have the right knowledge and information regarding.

Stocks have miss priced opportunities everywhere, you can make a huge amount of money in stocks- arguably stocks are the best investment vehicle for attaining above average investment returns. Price and value have huge gaps in stocks, if you are able to work out the true intrinsic value of stocks and understand them- you can find stocks which have huge price to value gaps and these are where the above average returns come from.

Finding value is what leads to attaining above average results in the stock market and it is not that hard to find value, as long as you have a disciplined approach in valuing firms. Value is easy to determine as long as you understand the business.

Stocks offer you with flexibility in your investment approach, there are many different approaches you can take in creating wealth- stocks offer you with many options and investment strategies. Doing what you best understand will ultimately lead to the greatest chance at success in your investments.

The stock market is a game of minds, not emotions- emotional discipline is essential in growing your wealth. To have a contrarian attitude to investing is valuable and stocks reward those who go against the grain.

So, why should you invest in stocks?

  • Any risk tolerance is acceptable
  • There are more opportunities
  • Value and price have huge gaps
  • The potential to beat the market is there
  • Buying what you understand will increase your chances at success
  • You can invest based upon passions
  • Stocks are simple and simply a game of patience and understanding business
  • You can diversify easily

Thank you for reading this blog,

Regards,

Jagdip

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