People all across Australia are always looking for the quick buck but in many cases, the vast majority of these deals are too good to be true and people end up losing money as a direct result. We all need to start thinking long-term and holding up for something that will come our way if we are patient. There are a number of long-term investment strategies that you might want to consider but one that should definitely be on your list of things to find out more about is the Australian stock exchange and the many stock exchanges throughout the world.
I am of course talking about investing in shares and even though there is a certain amount of risk involved with these, as long as you invest wisely and stick with the top performing companies that have been delivering excellent results for many decades now, you will significantly reduce any risk that you may be exposed to. Investing in shares is one of the better ways to grow wealth over the coming years and the following are some of the benefits that you might want to consider.
- You get better returns – All you need to do is to look back at the history of certain shares and you will see that they have outperformed many of the bonds and fixed rate bank accounts that have been offered. Figures tell us that investors enjoyed an almost 10% return on the money that they invested and this is an excellent ROI no matter what way you want to look at this. If you want good results and you want to reduce your risks then shares are the answer.
- You experience highs & lows – You want to be able to avoid the lows as much as possible but in the vast majority of cases, the shares will experience highs more often than not. This is why shares should be a longer term investment and you might even want to look into a longer period of something like a decade to make sure that you get an excellent return.
- It’s just more cost-effective – You should try to avoid selling when the market goes on a downward trajectory and you should always hold your nerve and keep your stocks for longer. Experience tells us that the longer that you hold onto your investments, the lesser fees that you will have to pay out on and this helps to improve upon your gains.
- You get to enjoy dividends – When companies have a particularly profitable year, they usually give dividends on a regular basis every three months or so to people who have invested in the company. You should try to hold onto these dividends rather than cashing them in and invest them further.
There are a number of different stocks to choose from and so it makes sense to talk to someone who knows about such things. It is never too late to start investing in your future.
Also Read: Understanding The Different Types Of Shares: A Guide For Investors
