How does the stock market work?
Usually those who want to learn to invest must also know how the stock market works. Taking the concept to extremes, the basic mechanism starts from the simple action of buying a stock. When the stock sees its price increase, so its value increases, then it is sold. The difference between the price paid and that to which it was sold constitutes the gain. So why buy shares that you never sell? The answer is manifold
Why buy shares you never sell
The reasons why many people prefer to buy shares that they never sell are that not everyone likes to control their investment portfolio. In fact, to make money on the stock market and create winning investments, we must always follow an investment strategy to follow. Which leads to having to review the assets on which to invest, check the shares on which to speculate, find advice, strategies, useful solutions to trade and invest your money.
All this takes a lot of time and effort. For this reason it is essential to try to buy securities to keep for a long time. In other words, actions that increase their value over time. Without giving the slightest concern.
How is the value of an action determined?
How is the value of an action determined? Usually the best business card to understand how to determine the value of an action is a solid business model that does not risk becoming obsolete or interrupted. Furthermore it is a business model that should have good prospects for the future and find the widest diversification in itself. An example is Brookfield Infrastructure Partners.
Actions to never sell
Brookfield Infrastructure Partners (BIP) in fact has telecommunications towers in India, railways in Brazil, infrastructure in the United States. All this in addition to dealing with ports, toll roads, buildings and other resources around the world. If we talk about investment strategies as an advice to invest safely then we talk about the basic principle of investment. In other words: diversification. Furthermore, most of the company's cash flow comes from assets as stable as regulated contracts. Therefore, starting from this observation, it is easy to understand why Brookfield Infrastructure Partners can be understood as a good example of an action that should never be sold.