Following some of the comments on a previous thread regarding desirability of high yield stocks as opposed to those held for growth, I thought it would be interesting to look at the broader question of why we are all investing and/or trading.
Obvious answer is to make money.
But then, as I thought about how some people - probably mostly those in retirement - prefer to have high yield stocks in order to know there is sufficient income to fund everyday expenses, and others in pursuit of high growth stocks, care little for the attached dividends and franking credits, I wondered what actually having the money means to us as individuals.
e.g. is it to ensure we have a sense of security, perhaps even something as basic as knowing we will never have to rely on the meagre government pension?
is it a sense of pride in having achieved financial security?
Is it simply so that we have the freedom to do whatever we want - buy a new car when we feel like it - travel business class etc?
Is it so we can help others, either in public philanthropy, or our own families and friends when they need it?
Or is it possibly sometimes just the love of money for its own sake?
(I have known people like this - the pleasure comes from just being able to see that bottom line increase - and usually they are very frugal in their personal spending).
And for those who are still striving for that magic amount, how do you think your life will change when you achieve it? How will you feel different?