If we use our observation and pay attention to the silent message behind what the world's richest have been doing , we will see that investments , especially those that come from shareholdings, known as shares , are one of the main sources of constitution of fortune of this group. Therefore, understanding how to make money with shares, like our select group of investors , is our goal.

How Do the Richest Make Money?

Investments in shares are the source of wealth for many wealthy families. When we look at Jeff Bezos, Warren Buffett or Bill Gates, we see that they are entrepreneurs and investors in their own companies. When I talk about investments , a distinction must be made. There are investments and there is speculation. Understanding which of these two you will decide to use to make money with stocks is vitally important. According to the classic standard of corporate finance , investments are all investments that remain in the same asset for more than 5 years. Therefore, the richest people in the world know how to make money with stocks and one of the best practices is to become a long-term investor in a company in which you are an active partner.

Do not get involved with Day Trader . After this sentence, the haters on duty are jumping out of their seats. But calm down, if you don't believe what I'm saying, I want to say that I always support my opinion with the facts and according to research that followed more than 20 thousand investors for more than 6 years , they show that few day traders achieve returns above R$ 10 thousand per month and another 90% incur losses. In other words, the evidence suggests that you increase your chances of making money with stocks if you choose to stay in the long term.

Source: Valor Econômico.

Source: Folha de São Paulo.

Always look for market-leading companies with excellent management . Management is the soul of any business, so finding above-average managers and companies is a good recommendation for anyone looking to make money with shares. If we look again at the richest people in the world, they own market-leading companies and have excellent quality managers. It seems simple, but staying true to this recommendation usually means fighting more intensely for the best investments, requiring some experience on the part of the investor.

Focus on fundamentals . For example: companies that continually issue debt without expanding sales and profits over time may indicate that fundamentals are deteriorating. Another example that you should avoid are companies with a high degree of leverage, that is, their resources are compromised by high debt. Anyway, there are countless quality and fundamental tests that we can do, but the secret is always to avoid possible problems.

Finally, pay attention to the future. More experienced investors know that a company's value is the sum of the present value of flows arising from its future activities. In plain English: a company is worth what it can generate. Therefore, look to the future and ask yourself: does this company have room to continue thriving and expanding? Engaging in market studies and research can help you find good opportunities to make money with stocks .

In short, don't underestimate the practices of the most experienced in the market. Avoid the temptation to get caught up in day-trader monitors. Invest in companies with exceptional management and solid financial fundamentals. Always keep a close eye on the company's prospects. These are the best recommendations for making money with stocks .