I am having trouble understanding long-term investing
Hey, amateur here. I've got some questions.
1. What do most people use to actually buy/sell the stocks? Online brokerages? I have seen countless threads on this, but I can't determine what the best method is. Do big companies have in-house brokers?
2. I am having trouble understanding the underlying principle of long-term investing. Say I buy x shares of a nice company I want to hold onto. Okay, so I have it. Now I find another company later that is a good long-term buy as well. But where do I get the money to buy some new company stocks without selling my old ones? Do most people use their income or what?
This even applies to a hedge/mutual fund. Forgive my naive question, but when a hedge fund wants to buy a stock of a certain kind, does it sell some good ones it has or buy them with another source? Where does the influx of money come from? Really what I am asking here is, if someone is a long-term investor (professional or not), and they want to buy more stock, is the only way to get more money to invest with using a chunk of their income?
If the fundamentals of long-term investing say to not sell, then I am confused as to how one can reinvest any of it! Without dividends, long-term investors have no liquid cash unless they sell.
Please explain. Thanks.