History shows that investing in stocks is one of the most efficient ways to build wealth over time. Nearly every member of the Forbes 400 list of wealthiest Americans got there because they own a large block of shares in a public or private corporation. Learning to invest wisely and with patience over a lifetime can yield a portfolio far outpacing the most modest income.
There are two types of brokers: full-service and discount. Full-service brokers tailor recommendations and charge higher fees, service charges, and commissions. Most investors are willing to pay these higher fees because of the research and resources these companies provide. With a discount broker, the majority of research falls on the investor; they just provide a platform to perform trades and customer support when needed. Newer investors can benefit from the resources provided by full-service brokers, while frequent traders and experienced investors who perform their own research may lean towards platforms with no commission fee.
Plug Power is an excellent example of the volatility investors may experience when they buy stocks beneath $5 – in the early months of 2020, shares of Plug Power rocketed up over 80%, only to suffer 50% losses shortly thereafter. While speculators may have enjoyed the pop and drop, true investors would be wise to buy and hold Plug, which makes hydrogen fuel cells for commercial vehicles. Plug’s fuel cell shipments have increased dramatically over the last two years, and the company recently announced a partnership that will usher the world’s first fuel cell-powered, zero-emission commercial trucks onto the road. This opens Plug to new business opportunities as companies around the world turn toward clean energy solutions.
Astute readers will realise that the above guidance is mainly taking different angles to help prepare for and guide decision making by the investor. The ability to confidently make decisions is vital for investment profits and long-term success. This pdf about the decision making models of Charlie Munger (business partner to Warren Buffett at Berkshire Hathaway - both are certified investment immortals) is almost certain to prove helpful.