The appreciation of wealth

With the addition of time, the purchasing power of money decreases. The sooner you spend it, the more valuable it will be. Otherwise, you will have to pay more money in the future. I bought a pack of five kilograms of rice, ten liters of cooking oil, etc. in advance today. Otherwise, the wallet will shrink again due to the increase in food prices next month.

The above seems to be reasonable, ignoring the limited period of food, it can be one or two years... if it is kept for too long, it will go bad, and it will be lost and wasted. It seems that the pass-through life cannot be avoided. It can be avoided for one year, and the second year cannot be avoided. Unless we surpass the pass-through all the time, some people use another word to call it "value-added". high purchasing power.

Value-added needs tools, investment needs tools, there are many tools in the market, there are many kinds of tools, and there are many choices. Migrant workers in Hong Kong already have MPF today. Regardless of whether the return is good or bad, it is a must for migrant workers. I do not recommend using MPF as an investment tool. The reason is very simple. It can only be retrieved at the age of 65, and it may become an annuity in the future. . Life is long, and if you need money for emergencies, MPF will not be able to help you. Today, some people voluntarily increase their investment in MPF. If you don’t wait for money laundering, you can consider it, because you can deduct taxes and you have already earned it immediately, and you can see the return in the long run.

Share your own experience. Investing in the stock market is one of the best ways to make money. What is the difference between MPF and the stock market? The difference lies in their own control, fast response, large market, and most importantly, a lot less administrative and surgical fees. I once shared the "compound interest" effect, the annual fee of 1-2%, after 10-30 years, can eat 50% of the principal.

Investing in stocks is theoretically similar to investing in a company. All the money you make from starting a company is yours, and the company loses money. It is not easy to start a company. Investing in stocks is to buy the shares of the target listed company and be its shareholder. The company has already operated. You can make money or lose money by looking at the company's stock. There are two goals for investing in stocks: the company makes money to make the stock price rise and makes a profit for itself, and the company makes money and pays dividends. Profit yourself, and the best thing is that both happen.

The direct point is to invest in stocks to increase value. The reason is very simple, but the implementation is very difficult. Investing in stocks is a combination of economic science and art. Economic science is mathematical research. How much a company buys, how much it costs, and how much profit it makes! How much profit this year, how much profit next year! These are objective conditions. Things such as company reports and valuations have already been helped. Today, different people have analyzed them on the Internet, and you can just buy and sell them.

As for the art part, it is not easy. I believe it is a relationship between people. It is mainly people who make a product successful. With time and patience, market forecasting is even more difficult, that is, there are many unknowns. These are the differences in the return on investment.

Today, Hong Kong's economic development is affected by mainland China. Last year's pneumonia problem and the global economy were poor. This year, in 2021, most local stocks will rise. Because of the accumulated consumption power for a year, the power released is very large. Unfortunately, the stock market in Hong Kong did not rise, and it fell a lot. It is a comparison. Money is very realistic and will flow to places with opportunities. Therefore, investment should follow suit.

The first choice for the stock market is the United States, followed by India, then Japan, other Taiwan, the United Kingdom, South Korea... Many local stock markets have opportunities. Given the limited time, I will try to share with you as much as possible.

If you like it, give me 5 likes, or invite me to a cup of coffee to support my creation: https://liker.land/1value9/civic