All About Purchasing Stocks

Today we’re here to talk about purchasing stocks, really, two parts, one, why do it? And then second, how do you do it? Well, over the longer terms, earnings and stocks in a standard of course 500 have increased at an 8% clip. Now, 8% in some of you may not seem a lot, but fact to do that year after year after year and you look over at 30 year period; it’s pretty hard to find investments that have had those types of internal rates of return. In a fact, if earnings do go up regularly, and cash load does go up regularly over long periods of time, then the value of the investment, the underlying investment will also go up. Now, are there bad days in the stock markets? Heck, yes. Are there bad periods in the stock markets? Heck, yes. Nonetheless, the value, the core value of that business will increase as cash flow does. But how do you buy there? Well, in the old days, you had to go your stock broker, and, call them on the phone or walk in, and they would look at their ticket tape, literally it was a ticker tape, and they would look at the price of the stock and they would say, “well you could buy these for 15$ or 20$, whatever it might be.

Well, we’ve come a long way since then. And now, on your home computer, you can buy directly from almost any stock brokerage firm in the world, and any discount brokerage firm in the world. The difference primarily, is going to be what you pay in commission, it may be worth more commission to get better research reports where you begin to commit your money, over the long term, it may be smarter to spend a little amount of money up front, pay the commission, and get better research, then just go blindly.