The stock market is tops for amassing wealth. Let me give you ten good reasons why I believe so and which, by the way, are exactly the same reasons why I love to invest in stock market.
1.) Investing in the Stock Market means potentially huge returns.
Warren Buffett, the world’s expert in stock market investing, acquired his great wealth purely from stock market investments, perhaps the only one among the world’s ten richest able to do so.
Had you invested your US$1,000.00 (worth only about $7,760 in 2008) with Warren Buffett in 1956, which was about 53 years ago, it would have amounted to US$30.6 Million now! What wealth generating power in the stock market investment!! Warren Buffett had just started his investing career, yet his rate of return had already reached almost 30% compounded annually.
2.) When you invest in stock market, it makes you “part-owner” of that company you invest in.
To get a Jollibee franchise, you need to invest about 20 to 25 million pesos. Then you spend a lot of time and effort managing and experience headaches that come with running a franchise. If you wish to “own” a Jollibee outlet, why not just buy stocks from Jollibee Food Corporation (JFC)?
At prevailing market prices, your P5,000 can already invest in 100 shares of Jollibee stocks. And because shares of stock represent part of a business, that makes you a part owner of its more than 1,500 branches in the Philippines and around the world. As a bonus, you also get to own other known fast food restaurant chains like Red Ribbon, Chowking, Deli-France, a popular fast-food chain – Yonghe King in China and a popular teahouse chain in Taiwan called Chun Shui Tang plus the latest in Jollibee’s ventures, “Tio Pepe’s Karinderia”. Cool, huh?
So next time you eat at Jollibee, proudly tell your friends and relatives how much you enjoy eating there. Why? Because you are one of its owners.
Perhaps you never pay your utility bills on time? Well, if you owned stocks in PLDT, Globe, Manila Water or Meralco, for sure you would be paying your bills promptly.
3.) As a stock market investor, you will “belong” to an elite group of people.
An Asian Development Bank study revealed that up to year 2005, out of the 87 million population in the Philippines, only 600,000 or 0.7% invested in the stock market. That’s not even 1% of the entire country! It also showed that most of these investors come from Class A and B segments of society.
It is not about getting there first nor is it multilevel marketing where the first investors scoop the profits but I consider it a great privilege not available to 90 million other Filipinos, to belong to a handful of brave pioneers who dared go into stock market. Surely, stock market investing is not exclusive to the very rich.
The Philippine stock market at its current infancy stage is exciting to watch for the next 5 years during which a lot of new things will happen. Afternoons at the Philippine Stock Exchange will be abuzz with activity as it caters to afternoon trading sessions soon. It should have been implemented in the middle of 2009 if not for the market conditions that caused its postponement. Then by 2012 it is proposed that Philippines will be linked to the other stock markets in Southeast Asia under the unified trading system. This will enable trading stocks with other Southeast Asian countries at the mere click of the mouse. Global Stock Market investing has never been this exciting!
Know more about stock market investing visit the blog of Zigfred Diaz to learn more.
