THE CORE
FOUNDATIONS OF BUILDING WEALTH
“The stock market really isn't a gamble, as long as
you pick good companies that you think will do
well, and not just because of the stock price.”
— PETER LYNCH
Have you ever wondered how multi-billion dollar
companies like McDonald's, Tesla, Starbucks,
Apple, Amazon, Facebook, Google, and many
more grow so quickly to enter their ranks? What if I tell you
that they did it because of you! Would you agree with me?
Of course, you bought their products for a long time, but
that’s not all, they even took your money to grow into who
they are today. You look interested, let me show you how?
They had a definite plan to grow their business, but they
didn’t have the money or even if they did, they didn’t want
to use it and save it for rainy days. Therefore, to get the
money for expansion without going to banks and getting
further into debt, they provided you a great opportunity to
invest in their company.
Where do they do it from? It’s a place called Stock Market.
A collection of all issued companies where people from all
walks of life and all levels (from beginners to professionals)
could buy and sell stocks in exchange for money. The piece
of the company which they offer you in exchange for your
money is called a stock/share/equity. Now, what does it
mean to buy a stock? OK, they grow the business, so what
is in it for you? The founders and investors put their money
into a company with the hopes of seeing that company
grow, get their money back, and potentially gain a hefty
return on their investment. In short, they are being entitled
to an owner of that company. What it means, is that you are
buying a tiny piece of ownership in that company by buying
their shares/stocks.
The motive is bigger than that, sure you want to multiply
your money but investing in a company accomplishes other
objectives too; for instance, you are not only contributing
towards the growth of a company; people are getting
employment because of that company and it is helping the
economy of the country to rise as well. Your money is not
only making you wealthy, it is making your country a better
place to live.
After you buy the stocks, the company will use your money
to execute their super special plan of expansion and in
return, they are giving you a definite portion of whatever
they make for the rest of your life. Pretty amazing, isn’t it?
For instance, let’s say you invested $500 in a company and
after three years they doubled the company’s revenue and
hence profit. Therefore, the $500 you invested, will then be
Russian
French
Spanish
Portuguese
Deutsch
Turkish
Dutch
Italiano
Arabic
Romaian
Portuguese (Brazil)
Greek
