Disclaimer this article is entirely based upon the authors own thoughts and opinions.
Stocks aren’t just shares of a company that goes up or down. They can’t just make you money from going up or from dividend payouts. There really is much more value you will get from owning shares in a company. Some of their value doesn’t even involve making money.
You are probably thinking, isn’t the only purpose of owning shares in a company to make money? Well, not entirely!
New Business Partners and Acquaintances
By being a shareholder in a company you are entitled to attend the annual shareholders meeting. There the company’s business is being discussed and critical decisions regarding the company’s future are taken. You get to use this opportunity to express your opinion about what direction the business should take. At the same time you get to understand how the business is being run and how board meetings work.
However most importantly you get to meet new potential business partners and acquaintances. Already you have shared interest with the people attending the meeting. For example you are all interested in stocks, business and financial matters. Otherwise you would probably not be attending the meetings. If it was all just about making money, then you would only attend the shareholder meetings when the company was doing poorly. This presents an excellent opportunity for you to get to know new people and perhaps start a business venture together with some of them.
If you aren’t interested in being more than acquaintances or friends that is absolutely fine. See the meeting as a chance to expand your social circle. Who knows, maybe one of the new friendships you form leads to something good.
Balancing out Your Portfolio
In order to become really wealthy in today’s world you need to have multiple income streams. Stocks are a great way to expand your portfolio and spread out your risks. At the same you get dividend payouts from many companies, because you are a shareholder. This income can be used to purchase more shares in the business, other businesses or for whatever purpose you see fit.
During these difficult economic times spreading out your assets is essential to continue to be prosperous financially. You don’t want one economic event to crush your ability to be free. If you owned multiple investments during the pandemic you would be alright. Unfortunately many owned stocks, real estate or nothing at all. Many people decide to only invest in one asset which is foolish in itself.
Stocks are easy to purchase via a broker and they are also able to be borrowed against.
The richest people in the world like Elon Musk don’t pay taxes, because they simply borrow money from banks in exchange for paying interest on their assets. There are no taxes on loans. What I am trying to make you understand is that stocks are not only a great asset to make money by buying for a low price and selling it for a higher price. There are many reasons to own stocks that have nothing to do with making money at all.
Increased Knowledge and Skill Set
Owning stocks also helps increase your knowledge and skill set. When you purchase shares in a company you become one with it. What I mean by this is you become invested and interested in what the company does. Your natural drive for learning new things is activated and you will not just learn about how the business functions you will also learn how the industry it operates in functions. For example what competitors does the company have, what market trends influence the business and what economic landscape does it perform best in. All this helps you broaden your understanding of several market sectors and increase your financial literacy.
Moving on owning shares makes you want to update yourself with the news occurring in the world. Especially the news and events that either positively impacts your shares or negatively impacts them. As time goes on you will probably find that you are becoming more financially knowledgeable and make smarter financial decisions, because of being a shareholder.
Supporting Growth and New Ideas
As a shareholder in multiple different businesses you are showing your support for both growth and new ideas. Businesses have many different reasons for having an IPO. For one they might be wanting to fund new projects, product development and new employees. When purchasing shares in these companies you are taking an active part in all of this. You are not just standing on the sidelines with your hands in your pockets. At the same time you help create job opportunities and drive the economy forward.
There may be times when you feel a sense of fulfillment in investing in businesses that have a good influence on society as a whole. During recent times it has become more important to invest in businesses that align with your morals and principles. As we evolve as humans we become more aware of what our actions result in. Therefore investing in the companies you feel align with these values and morals promote a positive change in the business world.
Conclusion
To conclude this article it is very important to emphasize that investing in stocks isn’t just a way of making money. It helps you meet new friends and business partners through the shareholder meetings. You also secure your portfolio and protect yourself against difficult economic times. Furthermore you become more financially aware and increase your financial skills. Finally, your investments help provide growth and new ideas with the support they merit.
Feel free to contact us with any questions regarding this article!
