raaman
Valued Contributor
How does long-term stock investing work?
Investing your money in stocks means buying a portion of the share capital of a company, which will give you the right to participate in the results of the company’s business. For this simple reason, a shareholder can benefit from a company's positive performance, such as growth in the market.
This is exactly the reason for investing in stocks for the long term. Thus, it provides for the maintenance of securities in the portfolio for a period exceeding five years. The idea behind the strategy involves the fact that good companies tend to remain relevant and consolidate themselves in the market.
As a result, the company tends to attract more and more investors, which helps to increase the value of their business and the value of their shares. And so, investing in stocks with a long-term focus means buying them now and leaving them in the portfolio for longer periods.
The sale of your share in the company can always take place as and when the desired performance of the company is achieved, or when the company no longer has good prospects, with changes in the characteristics or nature that led to the investment in the shares of the company.
Investing your money in stocks means buying a portion of the share capital of a company, which will give you the right to participate in the results of the company’s business. For this simple reason, a shareholder can benefit from a company's positive performance, such as growth in the market.
This is exactly the reason for investing in stocks for the long term. Thus, it provides for the maintenance of securities in the portfolio for a period exceeding five years. The idea behind the strategy involves the fact that good companies tend to remain relevant and consolidate themselves in the market.
As a result, the company tends to attract more and more investors, which helps to increase the value of their business and the value of their shares. And so, investing in stocks with a long-term focus means buying them now and leaving them in the portfolio for longer periods.
The sale of your share in the company can always take place as and when the desired performance of the company is achieved, or when the company no longer has good prospects, with changes in the characteristics or nature that led to the investment in the shares of the company.
