What is a primary goal of investing in stocks?

Investing in stocks primarily aims to achieve long-term growth. When individuals or institutions purchase stocks, they are buying ownership in a company, which can potentially appreciate in value over time. This appreciation is often driven by the company's growth, profitability, and overall market performance. Historically, equities have outperformed many other investment classes over longer periods, making long-term growth a key reason investors allocate capital to the stock market.

Investors typically seek to build wealth and expand their investment portfolios over time, leading many to adopt a long-term perspective. While stocks can provide dividends, which some investors may view as income, the main attraction is the capital gains that can result from the increase in stock prices, especially when held for years or decades. This approach aligns with the investment philosophy that recognizing and capitalizing on the long-term trajectories of companies is essential for significant financial gains.