subject: Top Advantages Of Buying And Holding Onto Fundamentally Strong Stocks [print this page] Buying and holding strong stocks over the long term really can be a great way to build your wealth over the long term. Here are a few reasons why millionaires and billionaires consider investing into the stock market for the long term really can be a great idea do lead to a lot of extra profits.
1. Great History
The stock market in general has outperformed every other asset class out there. If you can find the top stocks in the market and beat that return then there is no limit to how much money you can make or how fast you can build your wealth.
2.Dividends
The next advantage comes when you look at companies that offer top dividend paying stocks. Dividend stocks are basically stocks which pay you a small amount of money for each and every share that you own on a consistent basis. This can lead to steady income in addition to the appreciation of the stock.
Of course this is normally just a small percentage of what the price of the stock is. People who are making a living off of dividends are ones who have a lot of money to invest into it.
3. Doesn't Take A Lot to Maintain
The final advantage of investing into the stock market is that it does not require you to actively manage your money. You just need to find a company that is strong and then buy it and hold onto it for the long term. As long as the company still does have potential to grow then there really isn't much of a need to sell it and look for opportunities elsewhere.
Other investment options out there require you to spend a lot more time operating or buying and selling, which can be great if you are interested in constantly learning about the investment.
But passive investments can also be a fantastic way to help you build your wealth. It allows you to concentrate on making extra money from other things such as your job or a business and simply investing more money into the markets as your income increases from those sources.
