Law Of Accumulation

Investing allows you to participate in the corporate world that is all around you.

the law of accumulation, which explains that as companies or people become more profitable, they can expand and hire more people, creating more opportunities for others. Economic freedom would, Smith argued, lead to a more just society.

The great crash of 1929 also dampened enthusiasm for the markets, but the government learned over time to put cash back into the economy and lower interest rates in times of depression.

A man named Charles Henry Dow began calculating the average closing price of the top eleven stocks, then publishing it, helping people keep track of the stock index, which is an average of the stocks in that portfolio.

In 1934, the Securities and Exchange Commission (SEC) was created.

When Warren Buffet is tempted to splurge on an expensive item he doesn’t need, Buffet calculates what that amount would make for him in 20 years if he invested it instead. The answer usually saves him from the temptation of instant gratification.

The earlier you start investing, the sooner your money will start supporting you.