-jam- spoiling the market

Ahh.. a break… albeit a short one.
Time away from books, notes, complex analysis…

After much deliberation, I have decided to do it. I will post whatever I know about wealth creation right here! I think I might spread it over 8 days. So that I wont end up killing myself and flooding this blog!

What would you give if I told you that I am going to share how to make 15-20% returns on your investment year after year after year? You heard me! Not 3 or 4 or 5% but a whopping 15%, practically risk-free! Have I got your attention yet? Imagine what you could do with your money once you knew what the top 5% of investors are doing!!

Attention : Read on ONLY IF you want to take charge of your money and accelerate your financial growth!

Step 1.
While many people neglect this, I cannot stress the importance of looking for a company that has a great 5 to 10 year track record! What I mean is that when you go around looking for that stock or fund to invest in, ensure that the performance for the past 5yrs (min.) has been steady.
Very often, people (myself included) look for the fast kill. They buy shares/funds that are targetted to grow at 50-60%. While the figures look very very impressive, such growth is often unsustainable. As the saying goes “in the year, out the next!”

Step 2.
Ensure that funds(for simplicity and writing purposes, I will refer to stocks and funds as “funds”) have a wide economic moat. So you’ve never heard of an economic moat? Not to worry. It’s never too late.
A wide economic moat implies that the company has room for growth! Similarly, a fund with a narrow economic moat means that it has little room for future growth! Why are economic moats important?
A company with a wide economic moat may be one with a huge market share, high consumer switching costs and even patents, copyrights etc. For more information on economic moats, visit morningstar. They are No.1 on my recommended list of websites to visit for financial info.

Step 3.
Let me think… o yeah… companies that you are buying into should have credible managers! Why? So that they dont end up running away with all your money!
Ensure that they are honest and reliable. Now, how exactly do you define honest? Well, Adam, the person who taught me most of this, says that great managers don’t pay themselves bonuses when the company is facing a bad year. Valid point? You decide. Different people have different values in life so I find it very difficult to define properly what honesty is. But what you want to do, is to choose someone with similar values as yours. Thats the safest bet I guess. Heh.

Step 4.
Show me the money! No. Kidding. From step 4 onwards, I will show you how to pick and select the funds that will, 80% of the time, give you your 15-20% returns! It will be slightly more technical but I guarantee you, it will be worth it. And how do I know? Because I have applied theses strategies and used them on myself. And guess what? No points for getting the right answer here!

However, like I said, this is going to be an 8-parter series. Come back tomorrow to fuel your hunger. Satisfaction guaranteed. (Just realised I can’t say “or your money back”… Heh…)