4 Reasons Why Shares are a Good Investment

The following are a number of reasons why shares are a good investment...

1. The historical growth of the Australian share market over the past 50 years has been 12% pa (Australian Stock Exchange). Yes, share prices do fluctuate constantly and there are occasional major busts, but there are also occasional major booms. Buying quality shares and taking a long-term view is the key.

2. Shares are easy to buy and sell. You do not require very large chunks of capital and unlike real estate, which is slow and cumbersome; you can adjust, expand or contract your share portfolio whenever you please.

3. Spread of risk is simple - you may never own 100 houses, but you could easily hold shares in 100 companies across many industries and even in several countries.

4. Shares require no insurance, upkeep, maintenance or renovation.

?A very low-cost index is going to beat a majority of the amateur-managed money or professionally-managed money... (managed fund) fees will eat up a significant percentage of the return. You'll pay lots of fees to people who do well, and lots of fees to people who do not do so well.? Warren Buffet, world's most successful investor

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