Why Investing is Less Risky Than You Think

Why Investing is Less Risky Than You Think

That is what consumers do. They consume all their capital. The same people who will tell you that they are afraid of taking “risk” by investing will not give a second thought about blowing $100 at the mall on something they don’t need, can’t afford and will end up paying double for it over the next 8 years. 

When you invest, you become part owner of a company and you benefit when consumers purchase that companies products or services.  When you purchase their products (digest) you become an owner of their products and it benefits the owners of the company. Not you.

Story of 2 college students upon graduation. One spent $1,000 for a new computer the other invested $1,000 in a rather young company called Microsoft.  Within a couple of years the computer was outdated and worth pennies on the dollar. The student who invested in Microsoft was a millionaire. True, that does not happen every time, but how many people will not blink spending $5,000 on a cruise and not even invest into their retirement.

That makes investing better than digesting. Owners live by the golden rule. Those who have the gold, make all the rules.

Advertisements

Leave a Comment