Some individuals think money is the root of all evil. Yet when people are asked about their financial goals a common response is that they want to be really rich and become millionaires. However, if they make an average salary then this dream could be decades away, if ever. Once they realize this they understand that they should invest a certain percentage of their savings in order to have their money grow in value at a quicker pace.
The difficulty is deciding where to invest money - stocks, mutual funds, real estate property? People might want to invest in a public company on the stock market. If someone invested just $1,000 in Johnson & Johnson during 1983 when the share price was S0.09, they would have made about $600,000 profit because in mid-2004 the share price was then $55". This major gain would have made people more economically free and they would have had deep pockets.
On the other hand, buying stocks can be similar to a lottery. This is because it is not guaranteed that you will receive a positive return on investment (ROI). For example, a share could be purchased at $10, but drop due to reasons beyond the investors' control: price of product material or natural resources, political decisions like war or interest rate levels, legal activity like lawsuits or window dressing, If the share price drops then your investment hopes would go down the drain.
A safer option could be investing in mutual funds. These require numerous people to chip in with the hopes that as a group they can diversify their investments and make more money than if they invested it on their own in one main area. Or, real estate is a popular choice. Companies that offer stocks or mutual funds could go bankrupt and be worth nothing long-term, but statistics show that land usually increases in value over the long run and never becomes worthless.
раce = rate of progress, speed
a public company = a company listed on a stock exchange with shares available for the public to buy
share = unit of ownership in a company
guaranteed = certain, promised that something will or will not happen
return on investment = profit received above the cost of the investment
mutual funds = funds that group money from many individuals to buy a variety of investments
money is the root of all evil = money is the cause of all problems
deep pockets = lots of money
window dressing = making a company appear financially stronger or better than it is
go down the drain = be lost or wasted
chip in = contribute, give (things like money or time)