Investing by buying shares, generally listed on a stock exchange, has been a popular and well-used wealth-creation strategy for many years.
The investment industry and landscape have definitely become more advanced as time has gone on, in line with
the breakneck speed that the world is evolving in many spheres. This often causes some anxiety for investors who
put their life savings and future nest eggs to work in the stock market.
Investors now have a kaleidoscope of shares to choose from that allow them to participate across geographies,
economic sectors and commercial themes. These decisions can be implemented and changed, in real-time, at costs
that have been reducing rather than increasing due to technological efficiencies and competitive forces.
However, the fundamental tenets of owning a portfolio of shares remain intact, and the main benefit over time is capital growth. Owning shares in companies and brands means that the investor effectively shares in the profits
that they make and receives dividends that they pay. The criticism that is often used centres on how volatile equity
markets are. I would argue that volatility (how much a share price moves in value) is not the real risk investors face. The
real risk lies in permanent loss of capital and returns not keeping pace with inflation. Equity investments housed in
well-constructed share portfolios have proved over time they are a superior way of accessing capital growth and wealth creation
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