Stocks are the smallest units of ownership in a company, and when you buy a share of a stock, you own a tiny piece of that company. Companies sell shares to raise money for various initiatives, such as paying off debt or investing in growth. Over time, a share can increase in value and then be sold for a profit. Investors typically hold a variety of stocks in their portfolios to diversify their assets and help manage risk.
Historically, stocks have offered higher long-term returns than cash or bonds. This is why stocks are often seen as a cornerstone of an investment portfolio. But stocks are not without risk and can decline in value, so they should make up only a portion of an overall wealth-building strategy.
The story of the tortoise and the hare may sound like an overused metaphor, but there is something to be said for taking it slow and steady with your investing. Rushing in, or trying to time the market, can delay your progress and cost you money. It’s important to remember that the best investors don’t aim for perfection—they just try to do better than the average.
If you have money that you won’t need for a while, investing it could be one of the smartest decisions you can make. But if you are new to investing, the idea of buying and selling stocks can feel intimidating. That’s why it’s important to consider all your options and talk with a financial advisor.
A Financial Advisor Can Answer Your Questions About Stocks
At Edward Jones, we offer a wide range of wealth management services that can help you plan and pursue your goals. Our financial advisors can provide expert guidance, and help you invest in the stocks that are right for your unique situation.
Whether you’re looking to build your wealth, prepare for retirement or other goals, we can create an investment strategy that fits your needs. We can also help you select individual stocks and help you understand the benefits of diversification.
As part of our comprehensive approach to wealth management, we take the time to understand your goals and priorities. We’ll work with you to design a customized portfolio that balances stocks, bonds and other types of investments, and we’ll review your investments on a regular basis to make sure they’re still aligned with your goals.