4.You will pay taxes

  1. unless you have your stocks in a qualified retirement account you will pay taxes on gains as you sell and on dividends along the way.
  2. so you have to beat inflation and cost of taxes.

5. Stocks can be volatile

  1. volatility is when your investments rise and fall in a short amount of time.
  2. stocks are more volatile than bonds
  3. when stocks fail the investors lose everything.
  4. owning more than one stock will reduce the risk of bankruptcy

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