This Could Be The Investment Of Your Lifetime!!

When you make an investment, no matter how big or small, there is always the chance that this investment could be the investment of your lifetime.

Whether it is likely or not is irrelevant. Because none of us has a crystal ball.

What’s important is that it very well could be.

Here’s a great example of what I’m talking about…

One of the best investors in the world is a firm called Baillie Gifford. Baillie Gifford primarily invests in founder-led, disruptive companies that come to market as well as those that have been around for years.

In the early 2000’s, right after the dot.com bubble, Baillie Gifford invested in eBay (NASDAQ: EBAY) and Amazon (NASDAQ: AMZN). At the time of their investment, they had more confidence in eBay than Amazon.

Over the next 20 years, of course, Amazon would turn out to be the far superior investment – up over 17,000% since 2002, while eBay is up a little over 400%.

In 2002 I was a market maker working on a trading desk. I don’t recall one person there who felt Amazon would be the better investment over time. Not one.

As investors, we become owners. You may not look at it that way, but we are owners when we buy shares in a company. Our goal is to find the best investment opportunities we can.

We try to find first movers in an industry that is evolving, and take a partial ownership stake.

When we buy, our timeframe is long. Ten, twenty, thirty years or longer.

If you can do this, truly great companies will reward you handsomely over time.

Here is a list of quality companies that became the greatest investment of a lifetime for some people:

1. Home Depot (NYSE: HD) disrupted hardware stores by having everything under one roof, as well as low prices.

2. Walmart (NYSE: WMT) disrupted brick and mortar retail by offering the lowest prices.

3. Southwest Airlines (NYSE: LUV) disrupted air travel by offering the lowest prices and great customer service.

4. Costco (NASDAQ: COST) created a new business model in which you pay for the privilege to shop in their store.

5. Monster Beverage (NASDAQ: MNST) became the lead dog in the energy drink space.

None of these are companies that anybody thought would turn out to be investments of a lifetime.

Just find a business you like and get invested today.

 

My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

Click the image of the book at left to be taken to its Amazon page.  (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)

 

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No One Ever Made A Dime Panicking!

The last couple of weeks have been very tough for the stock market. Stocks have been under a great deal of selling pressure due to the trade war with China.

Last week I was talking with a friend of mine who urged me to “watch my stocks and be careful”.

I didn’t ask her what she meant by that, but I could pretty much guess that her advice would be to sell if the market got too volatile or scary. I certainly don’t think she was advising me to buy more stocks as the market went lower.

I then gave her the same advice that I give to readers of my blog: No one ever made a dime panicking!

From 1950 to 2019, the S&P 500 has gone up more than 100 times in value. During this same time period, the following events have taken place:

1. Nine recessions

2. The Korean War

3. Rising interest rates

4. The Red Scare

5. Kennedy’s assassination

6. The Civil Rights Movement

7. The Vietnam War

8. The OPEC embargo

9. Double-digit interest rate increases

10. The Beirut Embassy bombing

11. The U.S. bombing of Libya

12. Black Monday, in which the market fell 22%

13. The savings and loan crisis

14. The Iraq War

15. The housing slump

17. The Asia financial crisis

18. Long Term Capital Management’s collapse

19. The Russian financial crisis

20. The September 11, 2001 attacks

21. The Afghanistan War

22. The bank crisis

23. The housing Crisis

24. The European debt crisis

25. The China slowdown

26. Brexit

27. The US/China trade war

As you can see, we have seen our fair share of economic and geopolitical crises over the last 69 years. Yet the market has been extremely resilient.

In 1950, the S&P 500 was around 80. Today it is at 2,859.

If you look at the history of the stock market, you will see that there is absolutely no need to panic when we’re faced with something like the current trade war. I can’t tell you when it will end, but I can tell you that it will end.

Neither America nor China wants this to go on for years; economically, both nations have something to lose.

This is just another bump along the historical road – nothing more.

The biggest mistake you can make right now is to sell your stocks because of this short-term uncertainty.

Even if you own a company like Apple (NASDAQ: AAPL) or Starbucks (NASDAQ: SBUX) which has a lot of exposure in China, I would just sit tight and wait.

This too shall pass.

My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

Click the image of the book at left to be taken to its Amazon page.  (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)