Why building a portfolio is different from buying stocks
When we think about investing, the first thing that comes to mind is buying stocks. But what does this mean, exactly? If you're going to invest in a type of stock, you should have some knowledge of it first. In this article, we'll go over the difference between buying stocks and building a portfolio as it pertains to investing and how each relates to risk levels. Difference between buying and building a portfolio Building a portfolio can be seen as a way to invest in yourself. You are doing this by assembling a collection of assets that represent your skills, experiences, and knowledge. By doing this, you are creating something that not only has value to you but also provides upside potential should your skills or experiences develop over time. When buying stocks, you are buying a piece of ownership in a company or an individual. The hope is that the price of the stock will go up so that you can make money. The key to making money with stocks is to buy low and sell high. I...