Sorry…We Don’t Accept Cash!

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The “war on cash” is very real.

I am starting to hear about more and more retailers no longer accepting cash.  In fact, some companies, such as the restaurant chain Dig Inn pictured above, are making it against their policy to accept cash as payment.

I also look at my own spending habits for example.  I have reached a point in my life where I hate using cash.  I use cash for three purchases: to do laundry in my building, to get my beard shaped at the barber, and to get taps put on my shoes.  Other than that, I never use it.  I would bet that your list of expenses you absolutely must pay in cash is similarly short.

The trend towards a cashless society is on the horizon, and banks are taking notice.

Want to invest in this trend?  If so, I think Square (NYSE: SQ) would be a great choice.

Square is the innovative merchant services company serving small to midsize businesses.  If you have made a debit or credit card purchase from a smaller vendor, signed using your finger, and had your receipt texted to you, chances are that the transaction was processed using Square.

The stock was up 44% in 2018, and that’s after being down 38% from its 52-week high.  Square is taking market share from banks with its Cash App, which allows people to transfer money to one another via their phones.  The company recently applied for a banking license.

Square represents the future of financial payments.  It’s definitely on my watch list, along with these other stocks.  It should be on yours as well!

Talk to you tomorrow.

Disclaimer/Disclosure Statement: Information in this article is not intended to be a recommendation to invest in any stock.  Rather, it is presented for readers’ education and consideration when making their own investment decisions.  The author has no position in any of the stocks mentioned in the article.

*  The Stock Market is For Everyone, Eric Milton’s short guide to stock market investing for beginners, is available in e-book and paperback formats.  If you like what you see on this blog, we hope you’ll take a moment to purchase and read the book, let us know what you think via a blog comment or Amazon review, and share this information with others!  Thank you. *

 

3 Stocks For The Risk-Averse!

If you have been thinking about investing, but are a little gun shy given the past few months, I have put together a short list of three stocks you can invest in that will enable you to sleep at night.

These companies are all large in size, and able to withstand a big market decline.  You won’t get the same growth that you can realize from investing in a high-flying growth stock.  But you will get steady income in the form of a dividend.

So, here we go:

  1. Verizon (NYSE: VZ) – One of the largest telecommunications companies in the world with a market cap of $239 billion, Verizon is as steady as any business can be.  They have great customer loyalty, and their cash flow is on par with – if not stronger than – cable companies.  They boast the most reliable service, and their subscribers number 151.8 million – more than any other company.  Verizon is investing heavily in the rollout of 5G, which is expected to be the next big thing in telecommunications.  Verizon pays a dividend of 4.15%.
  2. Home Depot (NYSE: HD) – Home Depot is the largest home improvement company in the United States, with a market cap over $200 billion.  Over the past three decades, Home Depot has been one of the best investments in history.  Unlike Macys, Bed Bath & Beyond, and Sears, Home Depot has demonstrated itself to be “Amazon-proof”.  It is one of the best run retailers in the business.
  3. Alphabet (NASDAQ: GOOGL)– Alphabet is the parent company of Google, which is one of the top three most valuable companies on earth.  Google’s business is rock-solid; they generate an obscene amount of cash.  Google owns 44% of the global advertising market which is $88 billion.  They one of the leaders in autonomous driving.  Their life science research organization, Verily, cites a mission to “make the world’s health data useful so that people enjoy healthier lives.”

Over the next five to ten years, any one of these investments should outperform the market and would be great additions to a risk-averse investor’s.

Disclaimer/Disclosure Statement: Information in this article is not intended to be a recommendation to invest in any stock.  Rather, it is presented for readers’ education and consideration when making their own investment decisions.  The author has no position in any of the stocks mentioned in the article.

*  The Stock Market is For Everyone, Eric Milton’s short guide to stock market investing for beginners, is available in e-book and paperback formats.  If you like what you see on this blog, we hope you’ll take a moment to purchase and read the book, let us know what you think via a blog comment or Amazon review, and share this information with others!  Thank you. *

How Long Should I Hold A Stock?

Good morning!

One of the questions I am often asked by prospective investors is how long they should hold onto a stock, or stocks.

If you plan on investing money in the stock market, you have to be willing to commit capital for a minimum of three to five years.

That means any money you invest today should be considered untouchable for at least three to five years. Preferably five.

If you want to know why, take a look at the last 90 days.

Over the past three months, my personal account has gone down 42%.  It took me years to earn what I’ve given back these last 90 days.

However, that’s the stock market.

And that’s why you have to leave your money alone for a considerable amount of time, and let time do its thing.

Fidelity Investments did a study a few years ago in which they discovered that the performance of actively traded accounts underperformed accounts with little or no activity.  Some of these inactive accounts were held by people that had passed away!

Think about what this means!  The stocks were held for years and years, throughout market fluctuation after market fluctuation.  And these accounts ended up outperforming those in which the accountholders kept on trading.

That is a testament to letting your money work over time!

So to reiterate:

Invest with the intent not to touch the money for three to five years, preferably five.  Buy good companies, leave your holdings alone, and let time take its course!

*  The Stock Market is For Everyone, Eric Milton’s short guide to stock market investing for beginners, is available in e-book and paperback formats.  If you like what you see on this blog, we hope you’ll take a moment to purchase and read the book, let us know what you think via a blog comment or Amazon review, and share this information with others!  Thank you. *

VIDEO: 10 Stocks To Watch In 2019!

This is a list of 10 stocks I think are worth watching in the new year.  If you’ve never invested before, please check out my short guide, The Stock Market is For Everyone.  Thank you!

*  The Stock Market is For Everyone, Eric Milton’s short guide to stock market investing for beginners, is available in e-book and paperback formats.  If you like what you see on this blog, we hope you’ll take a moment to purchase and read the book, let us know what you think via a blog comment or Amazon review, and share this information with others!  Thank you. *

Take 10% Of Your Christmas Shopping Budget…

What’s your Christmas budget this year?

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$500?

$750?

$1000 or more?

Whatever the amount, take 90% of that and use it for holiday spending.  Take 10% and put it aside for buying at least one share of stock.

The amount is not important.  Getting started is.

Once you’ve put aside your 10%, head to Amazon and pick up a copy of The Stock Market is For Everyone and learn what to do next!

*  The Stock Market is For Everyone, Eric Milton’s short guide to stock market investing for beginners, is available in e-book and paperback formats.  If you like what you see on this blog, we hope you’ll take a moment to purchase and read the book, let us know what you think via a blog comment or Amazon review, and share this information with others!  Thank you. *

Start With $50 A Month!

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Hello, Joes and Janes!  I hope all my readers in the U.S. had a great Thanksgiving.

In case you missed it, I wrote a post on Social Security over the weekend.  It addresses common misconceptions people have about the program.  Please take a look if you haven’t yet, and please share the information with your loved ones and others.  Thank you in advance!

Over Thanksgiving dinner, I had a conversation with my niece about investing.  I knew that she had read my book, The Stock Market is For Everyone.  So I asked her whether she had started investing yet.

Her answer was no, because she didn’t have enough money.

I asked her if she could invest $25 per paycheck. Her answer was yes!  I excitedly replied that indeed she can definitely start now!

All she needed to do, I told her, was download the Robinhood app and get going! With no commissions to pay, Robinhood is great for the beginner who has little investment capital.

About six months ago, we started a Wealthy Joe Investment fund on Robinhood with $105.  We are now up over 150%.  That $105 is now $269!

It may not be earth shattering, but it’s all about the compounding.  If we keep up this performance, the account will grow quite substantially over the next 10 years.

Have you started investing yet?

If not, why not?  Do you think you don’t have enough money to invest?

Start small.  With time and patience, your investment will grow.

*  The Stock Market is For Everyone, Eric Milton’s short guide to stock market investing for beginners, is available in e-book and paperback formats.  If you like what you see on this blog, we hope you’ll take a moment to purchase and read the book, let us know what you think via a blog comment or Amazon review, and share this information with others!  Thank you. *