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Investing Information |
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Invest To Make Money, Not To Get Rich
The technology boom of the '90s romanticized the "rags-to-riches" ideal that all of us dream about when investing. For those that invested $1000 in Dell at $5 during 1990, held through the seven splits, then sold in March 2000 at $59, the dream was a reality. That investment would have returned an amazing $1,132,800! Image making over $1 million for every thousand dollars invested. Beyond Dell, companies like EBay, Amazon.com, and many others made their investors very wealthy. Unfortunately, the '90s provided a different investment environment than we are use to. We experienced the birth of a new technology and it required new companies, jobs and consumers to fill the needs of the industry. Immediately, our economy had a new demand with limited supply. This led to the feeding-frenzy stock purchasing that we all witnessed. Once reality settled in, too many companies were heavily leveraged, over-extended in equity, and/or did not have revenues to support their business models. The sudden collapse of mega-companies like Webvan, the online grocer that wasted over $750 million, became highly responsible for the economic problems that we faced earlier this century. Moral of this story: Invest to make money, not to get rich. One lessoned learned during the '90s was the importance of due diligence; researching company financial records, management philosophies, growth strategies, etc. Doing so allows investors to find strong investment opportunities and minimize the risk of purchasing a bankrupt company. Investing to make money stresses the need to evaluate financial goals and taking steps, not leaps, to get there. The oil boom of the year has brought about several high return stocks; doubling or tripling in a matter of months. Taking advantage of one of these stocks is a giant leap, but finding a 200% gain might require 7-8 25% losses. Ultimately, an investor could lose more than gained. With solid research, finding companies capable of returning 10-20% growth per year has a high probability. While not as romantic as a single high-return investment, five 20% gains equals the return of a single 100% gain. This is the meaning of taking steps. Settle for solid returns and repeat the process as many times possible. While not every stock will produce 20%, selecting strong companies will limit your risk for large losses. DPB Financial - http://www.dpbfinancial.com Watch for our next article, coming soon. A continuation of this topic, we will address the "how to" of analyzing your financial needs, setting goals and building and investment strategy to meet those goals. *The information within this article is for educational purposes only and is not being provided as investment advice. DPB Financial recommends that investors do their own due diligence or solicit the advice of an investment professional.*
MORE RESOURCES: Which ‘Boring’ Investments Are Always Worth It? Yahoo Finance Warren Buffett's Advice for Investing in a New Bull Market The Motley Fool Why Chinese Companies Are Investing Billions in Mexico The New York Times JPMorgan warns of growing risk to investing in Israel due to judicial shakeup plans The Times of Israel Giannis Antetokounmpo of the Milwaukee Bucks aims to level the playing field in ESG investing Fortune The Top VC Firms Dedicated to Investing in Artificial Intelligence Business Insider Analysis | It's Time to Switch from Passive to Active Investing The Washington Post 3 Fatal Flaws of Investing Revealed Entrepreneur Kansas lawmakers consider curbing woke ESG investments by ... The Topeka Capital-Journal EVAN GUIDO: Smart investing means also paying attention to the C ... Sarasota Herald-Tribune Morgan Stanley's Lauren Hochfelder On Firm's Globally Local ... Commercial Observer 7 big stock buybacks: Meta, UPS By Investing.com Investing.com Want to Get Richer? Where to Invest $10,000 in 2023 The Motley Fool Ashton Kutcher's tech investments made him millions—now he only takes 'roles that I want to play' CNBC Should SPDR S&P 500 ETF (SPY) Be on Your Investing Radar? Zacks Investment Research Here’s Why You Shouldn’t Fight the Fed Investing.com Investing When Your Time Horizon Is Short The New York Times Some Investors Are Missing Out on Higher Yields—and Don't Know It The Wall Street Journal Why You Should Invest: Top 10 Reasons AllBusiness.com Ultimate Guide on Investing for Beginners Entrepreneur The 10 golden rules of investing Yahoo Finance Investing in Method Andreessen Horowitz Market Correction Paves the Way for Renewed Rally Investing.com Omni Hotels Is Investing Heavily to Become a Luxury Brand Skift Travel News 3 Recovering Tech Stocks These Investors Would Buy Without ... The Motley Fool U.S. Stock Market Stuck with a Plethora of Mixed Signals Investing.com S&P 500: No Fear Can Cause an Unexpected Drop in Stocks Investing.com 3 Dividend Aristocrats to Buy Now Investing.com Daseke, Inc. Tops Q4 EPS by 19c By Investing.com Investing.com Gold’s ‘Golden Question’: Is $2,000 Nearer Than Ever? Investing.com 5 Investing Alternatives for Conservative Investors Kiplinger's Personal Finance First Mover Asia: Bitcoin Not Ready to Soar as Investors Await Fed Chair Speech, More Earnings CoinDesk EUR/USD: A Break Below 1.0650 Is a Sell Signal Investing.com Investing in PLAI Labs Andreessen Horowitz Wall Street Shakes Off The Blues - Investing Daily Investing Daily Gold Recoups Some Losses After Strong Sell-off Investing.com Taking It To The Shorts - Investing Daily Investing Daily Governor Hochul plans on investing $34.5 Billion in school aid WIVT - NewsChannel 34 Tax Benefits of Real Estate Investing For 2023 Yahoo Finance ICYMI: California Announced $400+ Million in Grants to Invest in ... Office of Governor Gavin Newsom Cummins Tops Q4 EPS by 11c By Investing.com Investing.com |
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