InvestorQ : How does equity help in wealth creation?
Mahil Khan made post

How does equity help in wealth creation?

Arti Chavan answered.
3 years ago
In its very essence, investing in shares is about accumulating and multiplying wealth. The most basic tip about how to invest money in the share market that traders follow is 'buy low, sell high'. Of course, buying low and selling high is not as easy as talking about it. But the beauty of equities is that if you get into quality stocks and stay invested for the long run then you are going to make good money. The problem actually arises when you start to time the market or to outsmart the market or to trade too aggressively. That is when you have a challenge on hand. Otherwise, plain vanilla investing for the long term is a good enough strategy to build wealth.
Another share market basic for wealth creation is investing for the long term. This is because businesses go through a lifecycle, and investors need to give their shares enough time for value creation. This is possible only if they stay invested in a particular stock over a period of time. If you are invested in good stocks long enough, you are likely to make profits and create wealth for yourself.