Stock Market and You - Lesson - 5

Before I start, please allow me to make an observation:  the more you earn, the more you spend.  Which means your money reaches more and more people, helping them with the money they get which you spend.  In other words, just by the simple act of spending, you’ll be helping so many people.  

You saw in the last lesson some basic information about investment in the stock market. Now, apart from your daily needs, there are many other things which we use every day, but do not buy as frequently as we buy groceries.  Footwear is a good example.  Consumer electronics is another example.  You yourself can make a long list of this type of products. 

Then there’s another category:  steel and cement.  You may not buy these items in bulk more  than  once in your life time. But, as population increases, the country needs to develop infrastructure on a regular basis:  roads, dams, bridges, ports, buildings, airports and so on.  Property developers continuously build new residential and commercial complexes.  New factories come up.  All these require a huge amount of steel and cement.  If you invest for long term in companies which manufacture steel and cement, your investment will definitely keep growing.

Here again, all companies in this sector do not give you  similar or hefty returns.   As already mentioned in Lesson 4, you need to look at several parameters – a few of which your stock analyst doesn’t tell you.