I'm going to resist the opportunity which this sub

[GURPS]

No need to apologize.

I'm going to resist the opportunity which this subject presents to jump off onto my rant about how so many equity investors miss the fundamental conceptual point of equity investing.

please do ........ I do not much care for 'modern' investing

 

[Tilted]

please do ........ I do not much care for 'modern' investing

Ha! Instead of me ranting, let's make this a conversation.

What would you (or others) identify as the generic motivating concept behind equity investing, from the individual equity investor's point of view? More to the point, what's the conceptual reason for choosing equity investment over doing something else with your money?

The idea of equity investment has been very important in the development of society in recent centuries. As a technology it has contributed greatly to humans' increased productivity and prosperity. Without it economies could not have been as dynamic nor adapt as rapidly. The benefits of equity investing from society's point of view, and its purpose from the would-be and going concerns' point of view, seem readily (and often enough) identified. But I don't often hear the concept behind the equity investment choice accurately articulated. It's something equity investors would seem necessarily, on some level, to be motivated by; but for many (including many well-respected and successful investors) it doesn't seem to be at the forefront of their awareness when it comes to making equity investment decisions and discussing what equity corporations should be doing with regard to investor relations. I suspect it is because they don't keep the basic concept of equity investment, as I would identify it, in mind that they seem to have different expectations and preferences for equity corporations - in so far as their focus on investors and short-term stock prices are concerned - than I do.

 

[ferdberfel]

But modern short term equity investing has lead to some social problems where many corporations treat employees only as another resource and forego long term vision for short term gain resulting in a skewing of the business model to that of "make money every quarter or fail". Not necessarily the best thing for a business, an economy, or a nation.

 

[GURPS]

Ha! Instead of me ranting, let's make this a conversation.

What would you (or others) identify as the generic motivating concept behind equity investing, from the individual equity investor's point of view? More to the point, what's the conceptual reason for choosing equity investment over doing something else with your money?

I am a simple, Steak and Potatoes sort of guy ....

I have 300 Shares of Stock from my employer I still do not know what to do with the stock ... 75 shares have vested already I can purchase them at the issue price of $ 33 and sell at the current price of $ 63 ... ​

so when it comes to 'investment' my outlook tends to be simplified ...

If I invest or loan some entity my money by purchasing a Bond or Note - maybe deposit Money in a CD .... that is 'investment' - I have worked on projects in my life, investing in 'sweat' equity ... where I got paid when the project was delivered, not a weekly check ....

I guess equity investment is something similar ?

who even has a 'savings' account anymore

I can remember when Checking in the 1980's paid 4% interest ... of course coming out of the Carter Yrs when interest on loans was 21% ....​

I know there are Mutual Funds and other instruments from 'investing' money

I did IT work at a Financial Services Company in Leesburg in 05 and heard a lot about ING, Orange, Alliance .....

I know they have 'things' to sell ..... or invest in


maybe a primer on equity investment or tell me to Google it

 

[Tilted]

I am a simple, Steak and Potatoes sort of guy ....

There's nothing wrong with that. The underlying idea behind the choice to make an equity investment is itself simple.

You have money that you spend - e.g. for living expenses, for enjoyment - not in an effort to save that money or increase the amount that you have.

You have money that you save - e.g. you stick it under your bed or hold it in some form that doesn't provide any meaningful return - you're just trying to retain the money that you have.

You have money that you invest - e.g. in yourself (as with some kinds of education), in a business you run yourself, in bonds, in commodities, in equities - you're trying to use the money you have to make more money.

My question is, when it comes to money you want to invest, what's the basic notion underlying the choice to invest it in equities rather than in other investment opportunities (e.g. starting your own business)? It's the same notion that underlies the choices of which equities in particular to invest in.