Page 19 - Intelligent Investing (3)

Why you should buy stocks cont.

Here’s an real life example:

You know someone who’s smart,charming & successful at selling electronics and

everyday they make a profit. Their business model is extremely successful but it’s

not growing as fast as they would like. If they had more money upfront to purchase

inventory and employees to help sell they would be much more successful.

They propose to you a deal in which you both make money. You supply cash

upfront to grow their business and in return for your initial investment (Capital)

they will pay you back plus cut you in on a percentage of their profits
(Appreciation).

Some people (Companies) even offer scheduled payouts throughout the year for

investing in their business and assisting them grow & expand.