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Many people are yet to understand how the shares business works. On my end, I am also on the lookout of gathering even more information on it. I can even remember how complicated it was for me a decade ago. What is shares and how can I access it?.
To start with, access wasn't as easy as it is today back then. You will have to be a staged investor to get brokers attention. It could get so frustrating that you will have to give up the chase. It was a much larger cloned business by then for only a few to profit.
Moving forward, the market has become open and well to some extent. My recent research still shows some limitations in accessing certain stocks. You are likely going to have to go through stock brokers. Yes, you can consider at least these two things; extra expenses or third party charges and transactional delays.
I just got such complaints from someone today concerning how difficult it is for her to be able to access her shares withdrawal through her broker. From what I have seen, the procedure is a little complicated, especially as the broker is the middleman here. Is it good to own or buy shares of companies? Are you surprised I asked this? It is one of my targets to easen myself of being workaholic.
Nevertheless, many misunderstand this and to answer the earlier question can be a yes and no. Yes, you need to expand your means of income; No, you need to own reasonable shares.
If it is not reasonable, then there is nothing much you are doing or in summary, you are into another gamble. It was something a friend told me recently; have you keyed into the Dangote IPO? Is it not bad advice but I had to answer the question of how many of those shares I can get my hands on. If it is not reasonable, on my end, I will give up such a chase.
I had to take time and do some needed explanations. Many are just buying for buying sake (claiming to hold a big company stock) or with the hope that it will explode in some months to come. Especially the youth, that crypto project mentality still running through their assumptions (10x, 100x or 1000x) and this is where they miss it.
The shares of reliable companies are always slow in movement. Don't expect any 10x, you are now in the arena of ‘the patience game’. Your advantage here is how many shares you own as you are willing to exercise this patience. In the next 5 to 6 years it may just be a 5 to 10% profit margin.
With the right calculations, you will come to understand that there is absolutely nothing to profit from if you own just a few stocks. Have you calculated the in-between inflation? Profit in business is seen when after expenses are subtracted, there is still a reasonable left over margin.
Let's just try out something similar. A company D sold out shares at an IPO price of $3 and even said the share made a 50% price increment, is this profit? It depends on who is involved. Let's also say Mr. Kelvin was able to buy 10 shares at $3 spending a total of $30.
It means he owns a stock worth $45 after 5 years and what’s his profit margin? $15 in 5 years, we can't call this profit. The answer here is ‘five good years wasted’. Consider the same with someone who closed in upto 1000 to 1 million shares. Now this is business
To conclude, let me add, as we speak, pricing of things has doubled. What happens in the few years to come, one should not look down on inflation. My advice here is, when turning attention into investing, make sure it is done with a reasonable capital and well, also with a good backup research.
It is much better to use your little capital and grow your personal business to have enough to invest rather than tying it down for a dime in the long run. Choose smart investing, shares and stock is a business of turnover.
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