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The pros and cons of investing in Stocks

A couple of days ago we quickly review the pros and cons of investing in Real Estate. One of our main conclusion was that all in all, being a landlord can be a time-consuming job and was not for everyone. Today, we will review stocks. When you buy a stock, you receive ownership in a company. Taking a long-term approach and being balanced in many areas can help you to build net worth at a much greater rate than any other type of assets. Using leverage is a way to increase the overall amount of shares that you own but we vigorously advise you to avoid using leverage. The main advantages of stocks are that they extremely liquid and most of the time easy to sell. The main disadvantages of stocks are volatility and bankruptcy. However the risk linked to bankruptcy can be mitigated in many different ways and by diversification. All in all, being a shareholder is the most effective way to build net worth but it also requires a tolerance to risk.

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