Author: Kevin Mercadante
As Warren Buffet said, time in the market beats timing the market. The earlier you start investing, the better it will be for you in the long run. Every individual investor always has the decision between buying individual stocks or investing in an index fund.
Getting only one stock is similar to gambling if you don’t know what you’re doing or if you’re not an angel investor. On the other hand, an index fund is broad, and all of your assets get diversified, but the profits are too small. Click here to read more.
For example, if you had invested a couple of dollars into Bitcoin ten years ago, now you would be a millionaire. Many investors say that you need to buy stocks and hold onto them forever, but which are they.
We’re going to take a look at some of the best options where you can put your hard-earned money and make sure that it works for you while you sleep. There are a few key things that you need to look for before you start investing.
The first thing is to make sure that the stock is at a reasonable price. If it’s too expensive, it may start losing its value. The next thing to look for is the people that run the company. They need to be transparent, honest, and results-oriented.
Without those character traits, it’s highly unlikely that a company will succeed. The final thing to look for is the rewards. The returns need to be in your favor to give you the initiative to invest.
Tech Companies
As soon as computers and smartphones entered pop culture, their spot in investment portfolios got reserved. They’re going to be a part of this century, and there’s nothing that’s going to change that. Companies like Apple, Microsoft, Amazon, and Google are too big to fail.
They’re the top three when it comes to tech, and no other company comes even close. Let’s start with Apple. They were the first business in the world to have a trillion-dollar market cap. That’s insane. They’re also the largest holding of Buffet’s portfolio.
Whenever a new iPhone comes out, it’s like a frenzy that takes over the United States. Everyone wants to be the first owner, and even if it’s not that different than the previous model, people are still going to buy it. The same thing is true about their laptops and tablets. Follow this link for more info https://techland.time.com/2012/05/07/six-reasons-why-apple-is-successful/
Steve Jobs did a wonderful job of bringing Apple to the place where it is today. Next on the list is Microsoft. These two companies are neck and neck, each one excelling in its own niche. They were third on the list when it comes to a trillion-dollar market cap, but Bill Gates has been the richest man on Earth for more than anyone can remember.
The Windows operating system is a staple everywhere, and they keep coming up with new technologies. Amazon changes things up a little bit. Even though they’re competing with Microsoft about cloud technology, they are still the leader when it comes to retail selling.
Whenever you want to buy something and get it at your doorstep the next day, Amazon is your first choice. Bezos is the richest person in the world, and he’s a financial genius. Even though he stepped down from his position as CEO, his skills and expertise have brought Amazon to the marketplace of the world, and they’re not going anywhere soon.
Finally, there’s Google. They fall under the company Alphabet, but everyone knows them as a search engine. They recently bought YouTube, and they dominate everything that we search online. Click on this link to read more.
Have a question that you need to be answered? You go to Google. Want to watch a funny video of a dog falling in the water? You go to YouTube. It will take decades for something else to take their spot, and they’re so big that it’s almost impossible for that to happen.
Dividends
There’s an old story about a rabbit and a turtle racing each other. The rabbit was exceptionally faster than the turtle, and it laid down next to a tree to rest. As it slept, the turtle walked. Slowly but surely, the turtle crossed the finish line and beat the rabbit in the race.
While tech companies are like the rabbit, dividend stocks are more like the turtle. They have smaller profits, but they’re stable and mature. They’re most popular with older investors since they don’t want to take on that much risk. You can go to reviews of Motley Fool Stock Advisor and see why they work so well. There’s no volatility, and it’s true that the best stocks grow with time—most of the companies that are included in these lists payout around two to three percent annually.
However, if the business is unable to pay off the dividends, it can cut them out for the year. Because of that, the stocks may go down, so you need to be careful in this scenario too. If everything is going well, the dividends can go as high as 10 percent per year.
The most important thing for you to do is diversification. Don’t put all of your eggs in one basket. The more you diversify, the better it will be for you in the long run. Invest in competing firms because when one fails, the other one picks up the slack. There are many options available; you just need to do your research.
