Why investing in stocks is a good idea
History shows that investing in stocks is an excellent way of making your money grow. It is ideal for you if you seek a high return and tolerate market fluctuations. Return consists of a rise in the share’s value and the dividends you get. By investing you can build your wealth, spread your investments and protect yourself against inflation. Publicly listed shares are, in principle, liquid, which means they can be converted into money quickly and easily.
Stocks are ideal for long-term investment due to high expected returns. Short-term fluctuations in value may be large, especially if you plan to re-invest the dividends paid by the companies.
However, many often think that starting stock investment is difficult. It is a common misconception that you need a large capital to start investing. However, there is no minimum amount that you need to invest. The recommended amount ensures that the proportion of transaction costs is not too large.
Stock investment – what you should know
Making good investment decisions can be a challenging task, but often investing in stocks becomes an interesting hobby. Once you have found a suitable company to invest in, it is virtually impossible to make mistakes in buying or selling, so there is no need to be anxious about your first buy or sell order.
- Stock investment always includes the risk of falling share values. Then again, it is also an opportunity for getting very good return on your funds.
- Risk and expected return always go hand in hand: the greater the risk, the greater the return you can expect, whereas a lower risk brings smaller returns.
- A good way of reducing the risk without lowering returns is diversification: spreading the money across several investments. It is also a good idea to diversify investments to different countries and sectors. You can ensure temporal diversification through regular investing.
- This means that you buy when prices are high and when they are low, in other words, you always buy at mid price.
Every startup business story is different
Every early growth business is different and faces both technical and commercial challenges – we select unique cases with a clear scalable potential and a strong fit to our capabilities.
After we invest, we really get to work
Our joint upstart experiences cover IT consulting, metadata, digital data, SaaS, big data, property, finance, extensive sales experience and more.
When the company has proven itself
Our preferred point of entry is when the company has proven its product and market fit. And our preferred point of exit is when it has proven its scalability.