Stocks Vs Bonds Should You Put Your Money Into Stocks Or Bonds

Stocks Vs Bonds Should You Put Your Money Into Stocks Or Bonds

Stocks Vs Bonds: Should You Put Your Money Into Stocks Or Bonds?
So what is​ the​ difference between stocks vs .​
bonds? People today are interested to​ know what the​ better method of​ investing is​ .​
Trust be told,​ many believe that bonds are better because they are a​ safer investment,​ as​ you are virtually assured of​ achieving a​ positive return on​ your investment.
Here is​ a​ brief explanation of​ a​ bond .​
The company you hold a​ bond in​ has issued you a​ bond in​ exchange for your money over a​ certain time .​
When the​ time is​ up,​ they will pay the​ loan back to​ you with interest .​
Therefore,​ as​ long as​ the​ company is​ financially stable,​ you can be almost certainly to​ make that money back .​
A stock,​ on​ the​ other hand,​ is​ not guaranteed and fluctuates all the​ time .​
Therefore,​ most people believe (in some cases rightfully so) that a​ bond is​ a​ better investment because they are less volatile.
However,​ here’s something very few investors are aware of: when done right,​ stock investing can actually be just as​ guaranteed of​ giving you a​ positive return on​ your investment as​ a​ bond,​ and maybe even more so .​
You see,​ when you focus your investing on​ companies that have sound financially numbers and good prospects for the​ future,​ you can be virtually guaranteed of​ making money .​
However,​ when,​ like most investors,​ you try to​ spread your investments around and include companies on​ shaky financial ground,​ you are just asking for trouble .​
The reason that so many investors lose money is​ that they invest in​ companies without looking at​ their financial statements .​
The only reason they invest at​ all is​ they think the​ stock price will be going up short term .​
Therefore,​ the​ first sign up trouble,​ they sell out .​
On the​ other hand,​ however,​ when you focus on​ sound,​ stable companies,​ you are not only assured of​ making a​ positive return of​ investment,​ but you can make a​ lot more money than you would with a​ bond .​
Warren Buffet is​ famous for achieving a​ 15-20% growth rate on​ his portfolio nearly every single year .​
This wouldn’t be possible without his strategy to​ focus on​ companies he can be assured of​ will turn a​ profit .​
Therefore,​ don’t be fooled into only focusing on​ bonds because they are safer .​
When you open your eyes,​ you will actually realize that there are many stocks you can invest in​ assured of​ generating you a​ profit.

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