Time is your friend; impulse is your enemy. — John Bogle
Have you dealt with the conundrum of finding easy ways to make money in the ever-changing stock market? You are not alone!
You can easily get swayed by the so-called slick stock market advisers who barely know any more than you know about investing, or become a street smart to find easy ways to make money in the street full of those who have no vested interest in your financial well-being.
Invest in an Index fund
Enter the world of Jack Bogle. This sage of the investment world has proven that paying 2-5% in fees to so-called experts will be a surefire way to earn mediocre return on your hard-earned money. Vanguard’s philosophy of investing in the entire market is the first of the three easiest ways to make money in the market.
Invest for dividends
The might of America is not due to its almighty government; it’s greatness is symbolized by those entrepreneurs who invent exceptional products and services to improve the quality of life.
You may have spent thousands of dollars in chewing gums, made by Wrigley, over the years; or you may have spent thousands of dollars to buy light bulbs from GE. The list is too long to choose from the likes of JNJ, Pepsico, Emerson Electic, Abott Labs and so on.
Do you know that these fortune companies also increase dividend over the years to create wealth for their investors? I know a friend who makes over $30,000 just in the dividend income alone. He has mastered one of the easiest ways to make money by investing in the finest fortune companies that have consistently increased their dividends over the years.
The easiest way to make money in the market
If you had invested just $4,000 in Apple’s stock after buying your first iPhone back 2007, you would have made $128,000 from that investment alone. Millions of its die-hard fans buy any new product this company makes.
***Cisco Systems Stock Chart***
You don’t have to the smartest analyst on the Wall Street with a degree from Wharton to find a revolutionary company such as Apple. You just have to follow the advice of the legendary fund manager Peter Lynch to invest in a revolutionary company as history unfolds in front of your eyes.
For the last five years, consumers have used mobile platform to make most of their online purchases. Apple has been at the forefront of this revolution.
Every decade has given birth to a revolutionary company to change our way of life.
In early 1900’s, RCA was dominating company as radio was the media of mass communication back then. In the decade before the crash of 1929, RCA stock returned over 1000%.
Microsoft and Cisco systems are two leading companies to revolutionize the high-tech industry during mid 80’s till late 90’s.
Cisco Systems returned a breath-taking 75000% from its initial public offering in 1990 till the dot-com burst of 2000.
Imagine, if you realized that Cisco systems was the biggest beneficiary of the Internet boon, you’d have made $2.2 million from the initial investment of mere $3,000 by purchasing just 100 shares of this great company. Even if you were not as savvy to sell the stock at its peak in year 2000, you would have $252,009.36 in your bank account from the initial investment of $979.
Google invented a new market for selling ads using its contextual text ads, and then leveraging millions of websites with its Adsense program. With its virtual domination of the search engine market, Google was poised to offer an easy way to make money for anyone who had common sense and wisdom to invest money in Google’s stock.
While its performance is not nearly as staggering as Cisco’s 75000%, your investment of merely $8500 in early 2004 would have become $76000 now. That’s fabulous by any stretch of your imagination.
The beauty of the capitalist system lies in its power to allow a common man to invest his small fortune in a groundbreaking invention, by a great mind, and profit from it handsomely while that invention makes our world a better place to live.
You may not have genius mind of Leonard Bosack who co-founded Cisco in his garage with his wife or Steve Jobs who co-founded Apple Computers with Steve Woznik, but all you need is to have a common sense to recognize their revolutionary inventions and invest even a small amount in their ventures to build wealth.
The easiest way to make money in the market is to find a revolutionary company and invest just a small amount of money — for a decade or longer — to profit from it while the company transforms the world in a meaningful way. Do you agree?
Common sense is as rare as genius, – is the basis of genius. — Ralph Waldo Emerson
Elsewhere:
The Fund that beat The Market 9 times Since 1999 @ Money Cone
How Do You Envision Retirement @ Modest Money
A Two Letter Key to Financial Success @ The Free Financial Advisor
Can Everyone Really Retire a Millionaire? @ Jlcollinsnh
Photo by: nmcbean