I'm not talking about the general market of publicly traded companies where your theory applies. I'm talking about the subset of startup companies that typically offer shares instead of payment to employes.
A lot of those are not or only partially investor backed. Even of those that are, most fail, their stock value effectively nil. Of the rest, a large share basically just breaks even which makes their stock pretty much untradeable since practically nobody wants to buy shares in a company that will probably never have a large growth. The tiny tiny rest grows in leaps and bounds and is the next google/facebook/, the stock value multiplying by factors of 10 or more.
Investing in stocks of small startups is a risky business - on average you can make a lot of money, but it takes a lot of capital and endurance to have a large enough portfolio that you actually achieve the average. Otherwise it's luck. My point is: Don't see shares in a company as income. It's an investment and a risky one. Do that with money you can afford to loose and effectively write it off until you've really sold it or the company went public.
A lot of those are not or only partially investor backed. Even of those that are, most fail, their stock value effectively nil. Of the rest, a large share basically just breaks even which makes their stock pretty much untradeable since practically nobody wants to buy shares in a company that will probably never have a large growth. The tiny tiny rest grows in leaps and bounds and is the next google/facebook/, the stock value multiplying by factors of 10 or more.
Investing in stocks of small startups is a risky business - on average you can make a lot of money, but it takes a lot of capital and endurance to have a large enough portfolio that you actually achieve the average. Otherwise it's luck. My point is: Don't see shares in a company as income. It's an investment and a risky one. Do that with money you can afford to loose and effectively write it off until you've really sold it or the company went public.