For the last 2 post we have been talking about the first 6 reasons on why I love stock market investing. I am sharing these reasons so that you will learn to love it too. I believe that the stock market is the greatest wealth generating machine man has ever invented and with the advent of the internet and globalization, the great playing field of wealth building has been somewhat equalized. But its more than a wealth building machine as you have already read. The stock market offers more than generating wealth. Now we continue with the last four reasons.
7.) Investing in the stock market the proper way is more stress free and gives you more free time than most day jobs.
When you hear the phrase “stock market investing” what comes to your mind? Well for most people, they picture geeky people staring on computer screens like zombies all day, trying to plot graphs and charts and it seems that they never get off the phone. The only channel they get to watch is either Bloomberg or CNBC or the local business channel. (Can’t even turn on Cartoon network for 5 minutes cause there might be a breaking news that comes in!) It really does look very stressful.
So why do I say that investing in the stock market the proper way is more stress free ? Majority of us think that the stock market is stressful because of all the volatility that is happening in the markets and that the pundits describe it as a roller coaster ride. Well it’s true, that is if you are a short term investor and that you are like most people who “trade” in the stock market. However in the long term the stock market is quite simple. No need to have your eyes glued on the t.v set all day. No need to even watch the ticker except when you are buying. No need to even do those lousy graphs.
I am not saying that you don’t have to work hard to succeed in stock market investing. You might have to do some heavy reading on annual reports, books, business news and other stuff that might update you about the companies you are buying. Heck you may even watch CNBC or the business news channel as you might get some great information, but you can still watch cartoon network or your favorite movie. You may have to work hard, but you will enjoy it and it isn’t as stressful as you imagined. I promise you, you will get a full sleep at night even during the times when markets crash. This will only happen of course if you do stock market investing the proper way. So how do you do it the proper way? Well that’s what this blog is all about.
You think that Warren Buffett who is the world’s greatest investor and is the world’s richest person would have a very hectic schedule and a very stressful life ? Well he once said “I really like my life. I’ve arranged my life so that I can do what I want.” If done properly, stock market investing is a fulfilling experience and is more stress free, more rewarding and gives you more free time than most day jobs.
8.) Investing in the stock makes you more sharp mentally
Investing in the stock market makes you more sharper mentally. Since news makes sense to you, you become more alert of the events that are happening in the world that you live in. Your mental processes start to work and you will learn to tap into your brain power more than the average human being. You start to pick up isolated facts that you picked up along the way as you progressed in your life. These are the stuff you learn in school, the book you read, the speeches you have listened to and your experiences. As you read and apply what you have learned, you start to put them into a certain form, a usable mental model that will guide you in every investment decision that you make.
Well when you read the above, it might sound like I am trying to pull your leg, not to mention funny. You might think I picked it out of a self help book or something. Well, this is actually what Charlie Munger said. Charlie Munger is Vice President of Berkshire Hathway, Warren Buffett’s partner and best friend.
Munger describes this as a “Latticework of mental models.” Munger once said “You’ve got to have models in your head. And you’ve got to array your experience – both vicarious and direct – on this latticework of models. You may have noticed students who just try to remember and pound back what is remembered. Well, they fail in school and in life. You’ve got to hang experience on a latticework of models in your head . . . And the models have to come from multiple disciplines – because all the wisdom of the world is not to be found in one little academic department. That’s why poetry professors, by and large, are so unwise in a worldly sense. They don’t have enough models in their heads. So you’ve got to have models across a fair array of disciplines.”
When you invest in the stock market the proper way, you spend more time learning more not only about stock market investing but about business, management, economics finance, accounting, law and even philosophy and the sciences. This will help you build your mental models and sharpen your thinking. As we go along in this blog, I will discuss more resources on how you can help augment and construct your “latticework of mental models.”
9.) Investing in the stock market forces you to set aside money to invest more
Some people complain that they can’t force themselves to save because once they get their salaries they are tempted to spend it. My advice is why not try investing your money in the stock market. It helps you set aside money to invest more.
When you approach stock market investing from a business perspective, you become excited when your stake in a great company grows. As you read more about the company you become excited about its potentials. You want to buy more of this great company so you set aside more money from your income in order that you could buy more at the right price. Investing in the stock market certainly forces you to set aside money to invest more.
10.) Investing in the Stock Market helps build the nation
Of all the reasons I discussed about investing in the stock market, this is probably the noblest one.
Take note that the main reason why companies want to get listed in the stock exchange is to infuse capital into their business, the reason for such among other things is so that they could further expand the business.
More capital translates to more business which in turns translates to more jobs. This also means more taxes for the government.
So when you invest money in the stock market you are actually doing something very noble and that is help create jobs and generate more taxes for the government. In other words you are helping increase economic activity which is very helpful in nation building.
So there you have it! These ten reasons certainly make a compelling argument as to why you should invest in the stock market. So why not try investing in the stock market today! If you are Filipino, they try our very own Philippine stock exchange. To learn proper stock market investing, make sure to drop by this blog from time to time.
In the next post we will be discussing the top ten myths of stock market investing.
Hi ! my name is Zigfred Diaz. Thanks for visiting my personal blog ! Never miss a post from this blog. Subscribe to my full feeds for free. Click here to subscribe to zdiaz.com by Email
You may also want to visit my other blogs. Click here to learn more about great travel ideas.
Leave a Reply