Is Stock Investing a Wise Decision?

For the average person the answer to that questions seems to be no. I’ve heard this many times from real investors. I’ve also observed how most people make a little, then lose a little, then make a little, then lose a little and it seems that all they do is just waste their time and sometimes lose money. There is no building process.

On the other hand, if you are interested in dedicating yourself full time or at least a good portion of your time and possess the ability and knowledge to analyze companies and markets accurately, then investing in the stock market is a viable option.

Stocks are usually purchased in the hope that their value will go up and bring capital gains to the investor. Some stocks do pay out dividends to the investor, although from what I can gather, the returns from dividend payments are nothing to write home about in comparison to the amount of money invested.

Now with the financial crisis and most stock prices way down it may be the moment where you could buy some good companies at a cheap price and not have to be an expert on studying company finances, cash flow sheets and market conditions. If you did decide to do that, be sure to invest only in well known companies with a popular brand name and long term competitive advantage or monopoly in their industry.

Our focus is on building cash flow or monthly income from assets, as opposed to capital gains like you may get from buying low and selling high with stocks. We want to buy and build more assets like properties, businesses and websites that will keep growing and multiplying our monthly cash flow. So far, as you know, we haven’t started so hot with the properties but we do have good cash flow from some other websites.

The benefit of this approach is that since you are building more passive (or semi-passive) income you become more financially free with more passive income, as opposed to making a big gain or making a sale that brings money but still having to work for more income down the road.