As an institutional investor, I view the stock market differently than other investors. A true investor doesn’t see a stock, they see a company that they can co-own. The Stock market is a place where company ownership is exchanged in pieces as sharesâ€”stocks are real companies. These companies were started by dreamers who wanted to change the world; this little difference changes everything for me. Viewing shares of stock as ownership explains how I consistently beat the market, financial advisors, day traders, and wealth managers year after year.
For many investors, the stock market remains a puzzle; they see a lot of different prices that move up and down and base their actions on hope with the expectation to buy cheap and sell high. Now, you’ll notice I referred to them as investors, but they are not; they are traders. Traders take a short term position to obtain small profit quickly, whereas investors are co-owners seeking more significant returns over an extended period. The world has always had traders. Five hundred years ago, Europeans sailed to the new world to buy tobacco and would sell it for a higher price back home. Trading is hoped that you will profit, investing is known. #venturecapital