Stock are a great way for you to build equity and there are many lessons and skills that are developed from the process of investing in the stock market. especially as a person living on reserve or if you are a person who never left reserve it is an ideal way for you to learn the ways of outside business and financial structures while building wealth. although I do realize it’s 2022 and the market has been volitile with a lot of stocks being high to purchase.

This is not to tell you which stock to invest in… but to understand that it does come with a risk. When you buy a share you are buying a small percentage of ownership in a business. There are many different kind of shares to be purchased for example common stocks, preferred stocks, dividend stocks and etc… For the sake of time and not being a pundit, I will recommend doing your own research. For my own personal investment structure, I tend to stay with stocks that yield a dividend or companies I value and believe in day-to-day life that are in-line with my values. Although there are more complex skills that needed to be attained when researching a stock. One of the most important skills to learn when buying a stock is the ability to interpret a financial statement because this will determine if the stock is overvalued and the amount of risk associated with it. 

Personally, I stay away from buying too much of one stock because I think that it is extremely risky. I invest in multiple stocks at the same time and as said by Charlie Munger “I’m not looking for the needle in the haystack… I buy the whole haystack.”  For example I do not invest to trade stocks… personally, I do not like this due to the fact that there are many taxes and legal problems that come with trading stocks or day trading for personal profit. For example one of the biggest problems is capital gain tax which comes from cashing out investment accounts. If I sell a stock it’s to trade for a better stock or one that aligns with my strategy… but I never cash out to go buy liabilities, same goes for my earnings off of dividends they go towards me expanding my account and stocks I would like to acquire.  

With Platforms such as Robinhood (USA) and Wealth Simple (Canada) Invest are custodial holders of your investment accounts and have little commissions on the sale of stocks like going through banks. It is becoming more and more simple to learn and start learning about the stock markets and starting small by investing in stocks is a great way to learn about the economy and business as well as wealth management. but the Key to Stock investing and investing in general is starting small and building up slowly.  For me starting with a small amount to invest in the early stages of the pandemic was a way that I passed the time and by winter 2022 I had moved over to real estate investment.  

Yes!…. I have an affiliate link! 

Wealthsimple Invest: 

https://my.wealthsimple.com/app/public/promo?code=sheldonmcgregor&locale=en-ca

Wealthsimple Trade:

 https://my.wealthsimple.com/app/public/promo?code=sheldonmcgregortrade&locale=en-ca