Are Stocks A Good Investment For Beginners?

The ultimate questions which the newbies in investing field ask everyone who have a long investing career. 

The answer to the question is of course yes. The answer is yes as long as you are patient enough and if you are comfortable leaving your money invested for at least five years. 

Why Five years you might ask. The answer to this is that it is pretty relatively rare for the stock market to experience a downturn that lasts longer than that. And if you have invested in good companies, who does a good job at creating good money habits and products will make their stocks will eventually go up. Which for you it means that you will make a pretty okay return on them.

However if you don’t know anything about investing and what makes an investor to an intelligent investor I would recommend to invest in mutual funds than individual stocks. And when you gain more experience with investing in mutual funds and you have learned a few things about investing then feel free to also invest in individual stocks. 

The reason behind this statement is because with mutual funds you can buy a large selection of stocks within one transaction. This means that you will have somehow a good idea about what stocks are doing okay and what stocks are not doing okay.

It is important to mention that it is much easier to create a diversified portfolio with funds than it is with stocks. This is because when you buy funds you buy multiple individual stocks in one transaction. But create a diversified portfolio with stocks isn’t much harder to create it than with funds. 

Yes it takes much more time, effort and money to create diversified portfolio with stocks. The reason behind is because create diversified portfolio with stocks takes a lot of research, depending on your knowledge, it takes a more money to buy more stocks and knowledge on how to manage a portfolio. When you choose stock mutual funds, the people behind them are doing the work for you.

READ ALSO

Can You Invest If You Don’t Have Much Money?

How to Invest in Stocks (Quick guide)

How To Open A Brokerage Account And What Is It?

You Can Find My Investing Portfolio Here

9 thoughts on “Are Stocks A Good Investment For Beginners?

  1. Its like you read my mind! You seem to know a lot about this, like you wrote the book in it or something.
    I think that you could do with a few pics to drive the message home a bit,
    but instead of that, this is fantastic blog. An excellent
    read. I’ll definitely be back.

    Like

  2. Pretty nice post. I just stumbled upon your weblog and wished to say that I have truly enjoyed
    surfing around your blog posts. In any case I will be subscribing to your rss feed and I hope you write again soon!

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s