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What can I do with my money? |
Stocks & Shares
Do you have an iPhone or a Spotify account? How about you become owners of these companies? That way you enjoy the product as a consumer and an owner- have your cake and eat it too!
What is a Stock or a Share?
Stocks/Shares is about buying and owning part of a public company listed on the stock exchange. The stock exchange is a market place where all companies have stalls, and where you as a buyer can purchase shares, be an owner and possibly get a dividend. The dividend is a payment you get when the company performs well. As Apple transitioned from a garage based company to a $1 trillion corporation, all stockholders benefited from its growth. As of 21st of August 2020, the value of my Apple shares have increased by 219%.
Publicly Listed Companies
Publicly listed companies register on a Stock exchange. Stock Exchanges are typically named after where they are located e.g. the London Stock Exchange (LSE) or the New York Stock Exchange (NYSE). Public companies are different from private companies which you cannot own via the stock exchange.
What returns can I expect
The Stock market is a place where you can can achieve double digit interest rates on your investments if you pick the right ones.
What stocks should I buy?
This is up to you. You have the luxury of investing in what you know or like. Do you like cars, Netflix, Tesla, ASOS, Banks, real estate, pharmaceuticals? Well, go shopping! but do your research first.
A few things you might want to consider when choosing a stock:
Stocks values or share prices can go up and down in value but research suggests that over time, they remain stable. Be mindful of selling your stocks particularly when the market is down. Investing is not the same thing as gambling. It is important to plan out why you are investing. If you are investing for retirement, don't follow the pressure to sell well-performing shares early because the returns are high. Similarly if an otherwise stable company is having a tough time due to a recession, it is tempting to want to jump ship but keep in mind that short-term trading takes a significant amount of attention and expertise.
Diversification
My Stocks and Shares portfolio is currently made up of 20% Stocks and 80% funds (see next section on funds). Many of the funds I hold have multiple stocks in them. This is because I like using funds to diversify my investment and I only invest in stocks that I personally like. If one company within the fund is having a bad day, the other companies cushion its overall impact.
Where can I buy Stocks & Shares
You can explore the following brokerage platforms for stocks, shares and funds
What is a Stock or a Share?
Stocks/Shares is about buying and owning part of a public company listed on the stock exchange. The stock exchange is a market place where all companies have stalls, and where you as a buyer can purchase shares, be an owner and possibly get a dividend. The dividend is a payment you get when the company performs well. As Apple transitioned from a garage based company to a $1 trillion corporation, all stockholders benefited from its growth. As of 21st of August 2020, the value of my Apple shares have increased by 219%.
Publicly Listed Companies
Publicly listed companies register on a Stock exchange. Stock Exchanges are typically named after where they are located e.g. the London Stock Exchange (LSE) or the New York Stock Exchange (NYSE). Public companies are different from private companies which you cannot own via the stock exchange.
What returns can I expect
The Stock market is a place where you can can achieve double digit interest rates on your investments if you pick the right ones.
What stocks should I buy?
This is up to you. You have the luxury of investing in what you know or like. Do you like cars, Netflix, Tesla, ASOS, Banks, real estate, pharmaceuticals? Well, go shopping! but do your research first.
A few things you might want to consider when choosing a stock:
- Do I like the company?
- Do I know anything about or have interest in the sector?
- Is it an ethical company (is that something I care about?)
- Is the company stable or volatile (this can impact the risk and performance of your investments)
- Do they provide dividends and if so how often?
- How long do I want to hold the investment for?
- What is the stock rating? (Stock rating refers to analyst views where they provide information on why you should buy, hold or sell a stock. You can typically find this information online from reputable financial sites)
Stocks values or share prices can go up and down in value but research suggests that over time, they remain stable. Be mindful of selling your stocks particularly when the market is down. Investing is not the same thing as gambling. It is important to plan out why you are investing. If you are investing for retirement, don't follow the pressure to sell well-performing shares early because the returns are high. Similarly if an otherwise stable company is having a tough time due to a recession, it is tempting to want to jump ship but keep in mind that short-term trading takes a significant amount of attention and expertise.
Diversification
My Stocks and Shares portfolio is currently made up of 20% Stocks and 80% funds (see next section on funds). Many of the funds I hold have multiple stocks in them. This is because I like using funds to diversify my investment and I only invest in stocks that I personally like. If one company within the fund is having a bad day, the other companies cushion its overall impact.
Where can I buy Stocks & Shares
You can explore the following brokerage platforms for stocks, shares and funds
- IG Share Dealing
- Hargreaves Lansdown
- Freetrade
- Interactive Investor Share & Fund Account
- Degiro Share Dealing
- Vanguard Investor
- Revolut
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What are my next steps with Stocks & Shares?
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I want a bit of everything to get a balanced investment portfolio. Explore Funds
Disclaimer
The content on WealthSquats are my own thoughts and is not financial advice. Consult certified financial experts to get information that is suitable to you.
The content on WealthSquats are my own thoughts and is not financial advice. Consult certified financial experts to get information that is suitable to you.
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