In the first article I introduced the general meaning of investing.
Now I want to dig about the difference between trading and investing.
We live in a society short term oriented, psichologically we are pushed to reach immediately what we want. We can’t wait for nothing, though it is empirically established that success depends on the willingness to delay gratification. This concept is the base of investing.
Citing the wealth investor ever:

“The stock market is a device for transferring money from the impatient to the patient.”

Warren Buffett

This is the way to make money in the stock market, and as I told in the last article: is the way to improve our society .
Nevertheless a good portion of the people in the stock market, are emotion seekers, they enter the market with the wrong mindset thereby they lose money.
They trade stocks like pieces of paper without considering that behind the numbers presented on the scoreboard every seconds (quotations) there’s a firm with employees and employers, with plants and buildings, with products and ideas.
These above make up the true value of a stock. For that reason we have to analyse the fundamental components of a business and then invest in what these firms produce in the future. When we buy stock we buy a piece of all the tangible components and the ideas of a business.

When we buy stocks, we buy a piece of the society, we invest to improve the future of our society and the future of our wealth.

Following chapter 3. Wealth

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