What Mother Never Told You About Stock Investing

What Mother Never Told You about Stock

InvestingBy: www.ProfitableInvestingTips.com

http://www.profitabletradingtips.com/

“Save your money,” your Mother said when you

received your allowance for mowing the lawn and running

errands. This was in 1986. The idea was to teach you to

be frugal.

By: http://www.profitableinvestingtips.com/investing/what-mother-never-told-you-about-stock-investing

http://www.profitableinvestingtips.com/investing/what-mother-never-told-you-about-stock-investing


So, you put money in your piggy bank and eventually

took all of the change to the bank and put it in your Junior Saver account. Over the years

you got a paper route and other jobs and following your

Mother’s advice you saved your money.




By the time you were ready to move out on your own you

had saved up a couple thousand dollars. Along the way you bought a PC and

Windows software and entered the computer age.




And you read about how Microsoft was growing and its stock prospering. While

Mom was telling you to save your money what Mother

never told you about stock investing is that stocks often

outperform other investments over time.




Mother taught you all about fundamental analysis as it

relates to balancing a checkbook, making smart

purchases, and saving your money.


http://www.profitableinvestingtips.com/investing-trading/fundamental-analysis



What Mother never told you about stock investing is that a

well-chosen stock purchase can change your life. But, maybe Mom did not know

about stocks.




What Microsoft Was Doing when You Were Putting

Money in the Piggy Bank




On March 13 of 1986 a small computer software company went public. You could have

purchased a share of its stock for $25.




To date Microsoft has split nine times and an original

share of stock is now worth $25 x 200 = $5,000 and pays dividends of just under $20 a year for each original share,

considering splits.




What Mother did not tell you about stock investing is that if

you do your homework, pick the right stock, keep track of what is

going on that you can end up years later with yearly dividends

that nearly match your initial investment and a stock that is two hundred-fold more valuable than

your initial investment.By:




And, if you are not impressed by Microsoft, would you like to have invested in Wal-Mart when it went public? Its stock has multiplied a thousand fold since it went public in 1970.




Apple is up two hundred fold in the last thirty years and sixty-

fold in the last nine years. What Mother never told you about

stock investing is that you can let smart and industrious people

grow your money for you and with dividend stocks even send

you quarterly checks.By:


http://www.profitableinvestingtips.com/investing-trading/dividend-stocks



Portfolio Diversification vs the Piggy Bank




Do stocks always go up? Certainly not! What Mother

perhaps never told you about investing is how her

grandfather lost money in the stock market crash that

ushered in the Great Depression.




Because stocks do not always go up and because some stocks go up in a good

economy and other tend to go up when times are bad

sound investing principles dictate that you diversify

stock investments.By:


http://www.profitableinvestingtips.com/stock-investing/sound-stock-investing-principles



Thus many investors seek to develop a stock portfolio that contains well-chosen stocks from various market sectors.

Read more about this strategy in our up-coming

article, What Mother Never Told You about Portfolio

Diversification.By:




What Mother Never Told You About Stock Investing

Economy & Finance

Transcript of What Mother Never Told You About Stock Investing