Fortunes have been made via rental properties, bitcoins and gold. And some investors swear by investing in a diverse range of assets. So, for example, their portfolios may contain real estate investments; cryptocurrencies such as Bitcoin; vehicles linked to the price of gold; debt securities such as bonds; and shares.
My simple approach to aiming for a million
But I’m all for keeping my investing life as simple as possible. Therefore, I am aiming for a million by investing in this last mentioned asset class – stocks. Or, to give it its simpler name, stocks and shares.
5 actions to try to create wealth after 50
Markets around the world are reeling from the current situation in Ukraine… and with so many big companies trading at what appear to be “discounted” prices, now may be the time for savvy investors to grab some good potential business.
But whether you’re a newbie investor or a seasoned professional, deciding which stocks to add to your shopping list can be a daunting prospect in these unprecedented times.
Fortunately, The Motley Fool UK analyst team has shortlisted five companies that they believe STILL offer significant long-term growth prospects despite the global upheaval…
We’re sharing the names in a FREE special investment report that you can download today. We think these stocks could be a great fit for any well-diversified portfolio with the goal of building wealth in your 50s.
The number one reason to choose equities is that the stock market has generated long-term gains that outpace the returns of all of these other major asset classes. And I think the main driver is that companies are what I would describe as active assets while others are passive.
This is because when I buy stock in a company, the company can work hard to increase the value for me. It can, for example, expand, grow its profits, accumulate its assets and increase its own intrinsic value in many different ways. And in this sense, the asset class of stocks and shares is active.
On the other hand, Bitcoin, gold, real estate for rent and bonds cannot do this. Instead, their price simply fluctuates (and hopefully rises, providing investors with a positive return).
The second reason to choose stocks is that stocks and shares can cover a wide range of sectors, including real estate, cryptocurrencies, bonds, gold and more. So I really don’t need to stray away from stocks and shares to satisfy my investment views or beliefs at any given time.
For example, I can invest in the cryptocurrency sector by selecting stocks such as crypto miner Argo Blockchain. Or my investments could be influenced by the price of gold by choosing gold mining stocks such as Shanta Gold. And to approach the real estate and rental market, I would move towards stocks such as Secure Income REIT among many others.
Why I prefer sole proprietorships
Nowadays, it is possible to target most investment themes by targeting some of the many exchange-traded index funds. Whether I’m looking for managed funds, trackers or niche investing themes, there’s often a fund that’s trading as a stock – all I have to do is just buy some of the stocks for participate.
But my quest for a million favors investing primarily in individual company stocks. And that’s because there’s often a higher potential for larger annual earnings for a single company if it trades well and grows.
But it’s not always the case. All businesses may encounter business difficulties from time to time. And negative news will likely weaken its stock price, resulting in a loss of invested money. But with the risks inherent in stocks, there is often upside potential. And the way I aim to find the nuggets is to thoroughly research each stock market opportunity.
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I Forget Buy-to-let, Bitcoin And Gold To Aim For The Million Like This – Tech Tribune France
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