The main reason why many investors invest in stock instruments is profit, especially if it is a long-term investment. Indeed, there are many benefits and advantages of investing in stocks. Many investors have experienced it. However, not infrequently there are also those who feel the loss. Yes, it is part of the risk of investing in stocks. There is no risk free investment.
That is the importance of having a good plan in stock investment. The reason is, if you plunge into the world of stocks without preparation and planning, let alone get a profit, it will be a loss that will be felt. Lack of knowledge, experience, and planning are the seeds that can cause losses. Even so, it can be overcome with a high willingness to learn.
If explained theoretically, there are actually only two benefits and advantages of investing in stocks, namely in the form of capital gains and dividends.
What are capital gains? In general, capital gain is the plus (+) difference between the selling price and the buying price of the stock. In other words, the selling price of the stock is higher than the purchase price.
What are dividends? In general, dividends are profits generated by an issuer from operational activities, then the profits are paid to shareholders in the form of cash dividends or stock dividends.
Then, what about the benefits and advantages of non-theoretical stock investment? Here are some of the advantages of investing in stocks that you also need to know, as follows.
Ensure Financial Prosperity
The profits obtained from the investment in shares are able to provide financial welfare for the investor community. As previously mentioned, stock investment is an investment with a high rate of return.
That’s why Warren Buffet, one of the famous figures and investors, was able to become one of the richest people in the world because of his stock investment activities. There are many more examples of investors out there who are successful and wealthy because of the benefits of investing in stocks.
Learn to Control Emotions
These are the benefits and advantages of investing in stocks that you can feel. Yes, investing in stocks can teach you to control your emotions. For example, when stock prices fall, investors must learn to hold back their emotions so as not to sell stocks without calculation.
Remember, a decision made in an emotional state will not result in a good decision. Emotions can paralyze clarity of thought. Well, stock investing can teach you about the importance of controlling emotions.
Learn the Meaning of Patience and Waiting
Stock investing is not always about profit and loss. There is a valuable process that investors can experience in investing, and it can provide important lessons about the meaning of patience and waiting. When stock prices fluctuate, sometimes up, sometimes down, investors learn to be patient and wait for something they want, namely financial gain.
Sharpen the Brain to Think
Stock investing is not like gambling, my friend. Gambling allows you to guess and hope the guess is right, while stocks don’t. If you want to profit from stocks, then you have to learn to think. Why? Because in stocks, you are required to conduct an analysis of the company, market analysis, analysis of the economic situation, and so on. In other words, it requires you to think.
Become a part of the owner of the company
Well, for those of you who buy shares of a company with a certain number of shares, both in small and large amounts, then you are considered part of the owner of the company. If someone else works for the company, then you are above them because you own the company.
In fact, if the number of shares you own in a company exceeds 51%, then you can become the controller of the company. Great, right? These are the benefits and advantages of investing in stocks that you will get.