Basic Guide To Successful Investing

by | Mar 19, 2018 | Investing, My Archives | , , , , ,

Part I

https://seekingalpha.com/article/4157375-basic-guide-successful-investing-part

  • Understanding Free Cash Flow and its importance.
  • Letting compound interest do much of the work for you.

Most investors jump into and out of stocks after a few years, or even months, and miss the true power of long-term investing. Sure, we take a beating here and there along the way, but quality always recovers and buying a stock in a high-quality company when it is priced as a bargain generally works out better than trading in and out. Remember, you are collecting those juicy dividends along the way. The annual dividend on 14,400 share in 2017 was $63,412.

So, sticking with quality companies and investing for the long term to allow the power of compound interest work for you are the first two key elements of successful investing. I will get into more about how I identify “quality companies” in practice as we move through the series.

Part II

https://seekingalpha.com/article/4157783-basic-guide-successful-investing-part-ii

  • The Myths of Wall Street exposed.
  • How does Warren Buffett Invest?
  • Do you really trust Wall Street to have your best interests at heart?
  • Interlude I – True story about an average woman who amassed $18 million on a salary of $15,000 per year.

If you want to be a millionaire you need to invest like one. The ultra-wealthy do not need all the income from their investments. And they certainly are not desperate to increase their income from investments every year. But it just happens anyway without their trying. How? I’m glad you asked.

You see, wealthy people can afford to wait for bargains.

There may be more skill, in terms of knowledge and experience, on Wall Street than most of us have. But we don’t really need that much skill. The thing we need the most is patience. Add a little skill and a solid plan to a lot of patience and you’ll do much better than relying on Wall Street.