A lot of my former officemates “invest” in the stock market. They believe they are “investors” when they talk about trends, P/E ratios, dividends, etc. However, would you call buying and selling stocks in the stock market “investing”?
In my view, if you’re investing in stocks, you should have a level of control over your investment. And you can only have that level of control if you have enough stocks to influence decision making in the company whose stocks you own. And I believe, if you’re not buying millions of shares of that company, then you’re just another “outsider looking in” as Robert Kiyosaki said. Those who really make big bucks at the stock market are not the traders but the majority shareholders of a corporation – the selling shareholders. Those are the shareholders with inside information on the company’s major decisions. And you don’t have that inside information unless you have big enough shares relative to the rest.
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