Why Invest in Stocks?
Historically, stocks have proven to be one of the most successful long-term investments that most people can make. The key phrase here is “long-term” because all of us have experienced dramatic up-and-down swings in the stock market. If you want to invest in individual stocks, plan on holding them for a long period, if possible.
Long-Term Growth Potential
Over the history of stocks, going back 90 years or so, investors have realized an average annual return of somewhere between 8 and 10 percent, depending on how the returns were calculated. That return is qualified with the understanding that it is reflective of the broad stock market, not individual stocks. Some individual stocks have failed miserably and indeed companies ...