4.You will pay taxes
- 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.
- so you have to beat inflation and cost of taxes.
5. Stocks can be volatile
- volatility is when your investments rise and fall in a short amount of time.
- stocks are more volatile than bonds
- when stocks fail the investors lose everything.
- owning more than one stock will reduce the risk of bankruptcy