Let us create a 3D eBook for you!
Let us create a 3d Digital eBook for you! DigyCat.com

Invest To Make Money, Not To Get Rich


The technology boom of the '90s romanticized the "rags-to-riches" ideal that all of us dream about when investing. For those that invested $1000 in Dell at $5 during 1990, held through the seven splits, then sold in March 2000 at $59, the dream was a reality. That investment would have returned an amazing $1,132,800! Image making over $1 million for every thousand dollars invested. Beyond Dell, companies like EBay, Amazon.com, and many others made their investors very wealthy.

Unfortunately, the '90s provided a different investment environment than we are use to. We experienced the birth of a new technology and it required new companies, jobs and consumers to fill the needs of the industry. Immediately, our economy had a new demand with limited supply. This led to the feeding-frenzy stock purchasing that we all witnessed.

Once reality settled in, too many companies were heavily leveraged, over-extended in equity, and/or did not have revenues to support their business models. The sudden collapse of mega-companies like Webvan, the online grocer that wasted over $750 million, became highly responsible for the economic problems that we faced earlier this century.

Moral of this story: Invest to make money, not to get rich.

One lessoned learned during the '90s was the importance of due diligence; researching company financial records, management philosophies, growth strategies, etc. Doing so allows investors to find strong investment opportunities and minimize the risk of purchasing a bankrupt company.

Investing to make money stresses the need to evaluate financial goals and taking steps, not leaps, to get there. The oil boom of the year has brought about several high return stocks; doubling or tripling in a matter of months. Taking advantage of one of these stocks is a giant leap, but finding a 200% gain might require 7-8 25% losses. Ultimately, an investor could lose more than gained.

With solid research, finding companies capable of returning 10-20% growth per year has a high probability. While not as romantic as a single high-return investment, five 20% gains equals the return of a single 100% gain. This is the meaning of taking steps. Settle for solid returns and repeat the process as many times possible. While not every stock will produce 20%, selecting strong companies will limit your risk for large losses.

DPB Financial - http://www.dpbfinancial.com

Watch for our next article, coming soon. A continuation of this topic, we will address the "how to" of analyzing your financial needs, setting goals and building and investment strategy to meet those goals.

*The information within this article is for educational purposes only and is not being provided as investment advice. DPB Financial recommends that investors do their own due diligence or solicit the advice of an investment professional.*


MORE RESOURCES:

Investing - Google News

This RSS feed URL is deprecated

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news

How to Drive Competitive Returns with Impact Investing - Knowledge@Wharton


How to Drive Competitive Returns with Impact Investing
Knowledge@Wharton
Two factors lie at the core of Inherent's investment philosophy, said Tony Davis, the firm's founder and CEO: “One, a desire to figure out how do we do good while investing our money, and secondly, the excitement around the ability for business to ...

Clean Energy Investing: Signs Of Alpha - Seeking Alpha


Clean Energy Investing: Signs Of Alpha
Seeking Alpha
As if three record-setting hurricanes weren't enough, along come killer firestorms and mudslides with a bomb cyclone thrown in for good measure. The ideological war continues while evidence mounts that extreme weather events may be related to menacing ...

Investing in tech for hospitality and food, Almanac Investments raises $30 million - TechCrunch


TechCrunch

Investing in tech for hospitality and food, Almanac Investments raises $30 million
TechCrunch
Individually, he's backed companies like Sweetgreen, the fast casual farm-to-table restaurant chain, that share Blue Hill's focus on sustainable products and socially responsible businesses, and now he's institutionalized that investment approach with ...

and more »

Why Does Momentum Investing Work? - Seeking Alpha


Seeking Alpha

Why Does Momentum Investing Work?
Seeking Alpha
When you're choosing an equity market allocation, I generally prefer to keep things simple - just buy a low fee global market cap weighted portfolio and call it a day. If you build your hedges (bonds or whatever) around that slice correctly, then your ...

Ford Is Investing For Change — But This Is The Problem That Analysts See - Investor's Business Daily


Investor's Business Daily

Ford Is Investing For Change — But This Is The Problem That Analysts See
Investor's Business Daily
Ford Motor (F) won't dash hopes when it reports earnings Wednesday, having recently warned investors that its profits for 2017 and 2018 will miss expectations. But Ford managers may not reassure analysts on shortfalls in its electric and autonomous ...

and more »

It's Impossible to Invest in Bitcoin, Analyst Says - U.S News & World Report Money


U.S News & World Report Money

It's Impossible to Invest in Bitcoin, Analyst Says
U.S News & World Report Money
Bitcoin investors are excited about the potential disruptive force that cryptocurrencies and blockchain technology be in the global payments industry. Unfortunately, that disruptive potential doesn't necessarily make bitcoin a safe bet for long-term ...

and more »

Wealthy millennials aren't investing their money - Quartz


Quartz

Wealthy millennials aren't investing their money
Quartz
Millennials with money in the bank are big on saving—but they're not so eager to invest. A new report from Merrill Edge, a retail banking division of Bank of America, which surveyed over 1,000 affluent Americans, paints a portrait of a young ...

and more »

Single-Family Offices Investing And Trading Cryptocurrencies - Forbes


Single-Family Offices Investing And Trading Cryptocurrencies
Forbes
Looking worldwide, a percentage of single-family offices are meaningfully involved in investing in cryptocurrencies with a growing number of them seriously investing in blockchain technology companies. According to Miguel Forbes, co-founder of Forbes ...

Cramer's guide to investing in the stock market's winning sectors - CNBC


CNBC

Cramer's guide to investing in the stock market's winning sectors
CNBC
As a result, investors flocked to steady growth stocks like Visa and Mastercard, shying away from traditional bank equities altogether. Other than Visa, Mastercard, Discover, PayPal and ancillary plays like Moody's and Morningstar, "it was simply too ...

and more »

LargeFriends.com - the best dating site for plus-sized singles!
SuccessfulMatchCentral.com - the best dating site for plus-sized singles!

PreLaunchX

MyIdeal Domain Is For Sale - $8,000 For Enquiries eMail Us

© www.MyIdeal.biz - 2012

home | site map | links