Investment #1 – Stocks

Anna loves sports. She does Yoga on Monday and Wednesday and goes for 5k runs two times a week. Neighbours recognize Anna because of her trendy sport equipment. She prefers the latest outfits of winfit – a pink multifunctional bra which suits perfectly to her aerodynamic running shoes. When Anna meets her friends for dinner, they often talk about the latest sports footwear and apparel trends. She follows winfits blogs and is the first in line when a new sneaker is released in stores.

I met Anna two years ago and wondered if she also holds stocks of winfit. Anna admired winfit and was quite enthusiastic about winfit’s futures success. However, she never heard of stocks or public listings.

Winfit is a publicly listed company, which means that the company’s stocks are freely traded on the stock exchange. Examples of other publicly listed sport companies are Nike, Puma or Adidas. By buying winfits stocks,  Anna is able to own shares of the company, becoming a shareholder of winfit – she owns a part of the company. The more stocks of winfit Anna acquires, the greater becomes her ownership stake in the company.

Stocks are ownership certificates of any publicly listed company.

So what’s good about Anna holding winfit stocks?

Owning stocks comes along with three major benefits for Anna. Firstly, she might receive dividends (money) when the company makes profits.

A sum of money paid regularly (typically annually) by a company to its shareholders out of its profits.

Secondly, Anna has the right to vote in shareholder meetings. At such meetings, shareholders get information on the company’s financials and can vote for the new board of directors. And guess what – Anna’s vote counts for more, the more stocks she holds.

Thirdly, Anna has the right to sell her shares to someone else, and profit from this sale. How can Anna benefit or profit from selling her shares? This will be explained in another blogpost (here).

Pretty simple, right? Now that you understand the basics of stocks you might wonder – why would companies like winfit want to offer its shares to the public? Find out in our next article here.

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Finding Your Inner Investor

Before you join the exciting life of investing, it’s important to determine what type of investor you want to be. Just like selecting your ideal character in a video game, you need to first consider which goals you plan to achieve.



How long do you want to hold a particular investment? Are you planning on making short-term returns that you can use later in the year, or do you want to let your money accumulate so you can fully reap the benefits in the long-term?


Risk Level

All investing includes risk in one way or the other. Are you able to watch your investment fluctuate and go up and down in value? Your risk level will likely be determined by how urgently you need the money. If you’re approaching retirement,  it probably isn’t the best idea to invest in something with high fluctuation potential. However if you’re in your 20s or 30s saving for the long-term, you shouldn’t care as much about the volatility of your investments.



How often do you want to be checking up on your investment? Do you want to buy something, continue on with life and check back on the investment months or years down the road? Or do you want to be continuously monitoring the investment and taking advantage of any potential opportunity that arises?


Knowledge Consumption

What is your willingness to learn everything you need to know about a certain investment? Some investments are made super simple, while other demand more study time. Do you want to become an expert in a certain type of investment? Or do you want to keep it basic and and continue on with your daily activities?


You’re in control of who you want to be as a person and an investor.

So the question is:

What type of investor do you want to be? Write us your thoughts down below!