Long-Term Investing

Guest Post by Rex Pascual

This article will talk about building wealth through long term investing in stocks.
Some years ago, I started working in the financial industry as an account representative for a small brokerage firm. My uncle was one of my clients, and he was anxious to invest with me. Through research, I picked a small company that made the tools so that scientists and researchers can do their job well. My uncle bought shares of this company. Within 3 weeks I made my uncle 50% on his initial investment. From there, I never looked back.

 

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Although this 3 week time frame may seem very short to long term investors, I just wanted to illustrate the power of investing as a whole. My uncle was so happy that I made 50% for him. He proceeded to use the gains on the stock position to do major repairs on his car. The money really came in handy.
Now it may seem that long term investing does pose risks, and to be honest, any investment poses risks. Many people throughout my career have told me that stocks are risky and that investing is gambling. To that I say, yes, stock market investing is a form of gambling. You put your money on a position hoping to sell that position in the future at a higher price. Buy low and sell high, right?

 

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As an example, I cite the Google IPO (initial public offering). Google went public on August 19, 2004, at $85US per share. That may seem a bit high to many of us, but think of how Google has performed since then? Google now is approximately $772US per share, a staggering 808% performance! $10,000 invested in Google at the IPO would be worth $8,080,000 now! Sure it was a gamble, but who would have thought that Google would be such a technology powerhouse?

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Now I’m not saying that finding the next Google is easy, and there are professional money managers whose job it is to find the next Google. For the rest of us, we do our research on companies that are well known, whose products and services we already use and love. These are the companies that have seen the test of time, have weathered the storm and are still with us. These are the types of companies that deserve our investment dollars. Who hasn’t heard of Coca Cola or General Electric, or General Motors, or even WalMart?
These are the companies who sell products to you and me year after year. They are in it for the long term, and many of them pay dividends to their shareholders. These are the companies that, on occasion split their stock to make it more affordable for you and me. These are the stocks to build wealth.

 

Thank you investors for your time. I truly believe that you can and should build wealth through long term stock investing.

 

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Rex Pascual is the owner of Trading US Stocks, a soon to be FINRA member ( www.finra.org ) in the US. Mr. Pascual is currently building the business so that Filipino investors can gain access to the US stock market. For further information, kindly email him at info@tradingusstocks.com or Viber him at +15624450126

6 Comments

Filed under Finance Tips, Growth

6 Responses to Long-Term Investing

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