Why Work From Home In Your Own Home Business?

Work From Home Reason #7 Will Convince You

You may not actually own any stocks and shares...

If you have a personal (even with your own work from home business you may feel the need) or works pension plan, then the trustees of that plan will invest a large proportion of your money in the stock market.

That's how pension plans grow. It was ever thus, and it will be in the future.

If you have a savings plan of any description, then some (if not all) of the money in that plan will be invested in one way or another in the stock market.

Why?

Because under certain circumstances there is no better way to make money on this planet (better than a work from home business? You may be surprised. Read on).

The banks know it, Pension plans and savings funds know it and a few individuals know it.

By the way...

Those "certain circumstances" are as follows:

1. You need a fairly substantial amount of capital to start with - to give yourself a chance, probably not less than $250,000
2. You need to be able to invest for the long term - 25 years or more is not unusual
3. If you're doing it yourself, you'll need a lot of time and knowledge and be prepared to work hard at your investing
4. If you're delegating to a stock broker, you'll need total and absolute faith in his ability.

   You'll be placing your future financial well-being in his hands and he will not offer any kind of guarantee.

   Ask him about his guarantee, but provide a chair to catch him.

5. You'll need a certain amount of luck - in the short(ish)term the value of stocks really can go down as well as up.

   It happens even to the mighty Microsoft - as you'll see below.

Warren Buffet,

Who is probably the 2nd richest man on earth, has made his billions from long term investing in the stock market.

Bill Gates,

The richest man on earth, has, if truth be told, made his personal wealth on the stock market.

Think about that for a moment.

The two wealthiest men on earth have both made their fortunes from the stock market.

Warren Buffet:

By investing in a wide range of companies over very many years, and...

Bill Gates:

The founder and major shareholder of the mighty Microsoft, has also made his personal wealth on the stock market.

But unlike Warren Buffet, the sainted Mr G has made his billions from the shares of one company:

The company he helped to start and has since led...

The very very mighty, Microsoft.

It's (fairly) simple

He co-founded Microsoft but as his fledgling business "took off", he needed money to grow the company.

In time honoured tradition (it was ever thus) Microsoft sold a portion of it's equity in stocks and shares and the co-founders kept the largest chunk of shares for themselves (only right and proper - they started, developed and built the company into what it is today).

Microsoft's value, therefore, is dictated by the number of shares available and the value that the open market places on those shares.

And Bill Gates's personal fortune is affected in the same way - by the number of shares he owns and the value placed on those shares by the market.

You'll often see stories in the press, particularly when the stock market has one of it's regular "corrections" (falls to you and I), that Bill Gates "'lost' $1 billion today".

But he didn't.

He still owns the same proportion of Microsoft, it's just that his own personal shareholding value decreased by that amount due to the vagaries of the market.

In truth it's nothing more than a "paper" loss.

Had he sold his shares at that moment, then yes he would have lost a large amount of money (in comparison with the value of the previous day).

But he held on to them in the expectation (certainty) that at some stage in the future the value of his shareholding would rise again.

And to be honest it probably will.

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