As much of the developed world seems set to continue to go through a cycle of low interest rates, looking for ways to try to boost returns on money which is saved or invested is something many more people are turning to.
Becoming frustrated at the way inflation has eroded money they have saved in banks and other savings institutions, these people are not out to make vast profits – their primary concern is simply to be able to continue leading the life they have become used to. Inspirational stories of people who have been successful in increasing their wealth through stocks and shares are plenty.
One such is that of Walter Schloss. Schloss was a long-term investor, whose investments grew at an annual rate of 15.7 per cent over more than 40 years, compared with the stock market’s return of 11.2 per cent a year over the same period. The
Schloss has a number of key tips, which include:
– Try to establish the true value of a company you want to invest in
– Have patience – it can take some time for a company to grow in value
– Only professional investors should follow tips or make quick moves
– Have an underlying philosophy to your investment plans and stick to it
– Make sure you fill your Stock ISA every year
– Listen to the views of people you respect – but don’t necessarily accept them
– Keep emotions out of your decision-making if possible, and especially, do not fall prey to acting on fear or greed
– Remember the importance of the number 72. If you calculate the number of times your yearly return will go into 72, this will give you the number of years it will take for you to double your money.
The best way for a small investor to earn good returns is to invest in companies whose shares are low-priced. That way, there is much more potential for them to grow.
Finally, bear in mind that investing is much like gardening – you should enjoy the fruits of your labour, rather than just consider it as a way of being able to earn money to simply buy more.
With all the advice available today, in newspapers, and especially on the internet, many more people are taking their futures into their own hands, and investing themselves. And when it comes to investing in stocks and shares, at least your money shouldn’t end up in the already overstuffed pockets of a dodgy bookmaker.