INVEST NOW, RETIRE EARLY: THE ONE STOCK PER MONTH PLAN!

VTCastle's picture
Posted by VTCastle on March 26, 2008 10:04 AM PDT
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I've got a secret, and if you have followed my blog posts to date, it's fairly obvious once you read between the lines.

I LIKE MONEY! Crisp greenbacks or shiny gold coins are not only items I collect, but like many people, I have used my love of "something" as a new career path.

To be more specific, the tangent that fuels my newest obsession is educating people on the subject of how to make money by taking control of their finances, and most importantly, teaching everyday people how to put their money to work for them, instead of against them.

As with all things, there are negatives. I really dislike the people who consistently pressure me review their latest get rich quick scheme, or hound me for a "hot stock tip" hoping some no name company has discovered the cure for cancer.

Truth is, getting rich takes a while even if you know exactly what you're doing. In the real world, creating wealth is not a simple equation of:

ADD MONEY + LUCK + 12 MONTHS + HOT STOCK TIPS = MILLION BUCKS

I wish it were this easy, because if it were, I would be the most successful financial guru in history with a client list longer than my... well, you get the idea.

What I can advise, however, is how to get rich by tapping the full power of you biweekly paycheck using a steadfast equity building process.

We can accomplish this by eliminating frivolous purchases or the "nice to have" gadgets from your budget, which can really pay off over time if those funds are used properly.

I know this because I have successfully tested this hypothesis on the most willing lab rat in the world - myself! Please note, the lab rat was not injured in this experiment.

How to get started?
How I got my start was by cutting approximately 10-20% of my paycheck, and investing those funds every two weeks into a rapidly growing company (i.e. growth investing) using a Plain-Jane online brokerage account.

Sounds stupid right? How can anyone get rich by investing $200 in some half ass growth company?

When you consider that one of the first companies I invested in was Apple computer (NASDAQ: AAPL), and Apple had increased in value by about 1700% over a 7 year period, you will find out that it's really not that difficult to grasp.

How to pick stocks?
Granted, not all companies I've picked have this type of stellar performance, but the majority have at least doubled in value several years after I bought them. So why did I pick Apple in 2001?

That little device called the iPod came out in late 2001 didn't it? How about the iBook? Steve Jobs had resumed control of the reigns, and had a stellar new product pipeline that the cult like Mac users would gobble up faster than Krispy Kreme donuts across the street from a Jenny Craig weight loss center.

Not everyone can pick a winning stock. It's very difficult for the novice investor, because earnings reports, marketing data, and growth projections are all things one must consider before investing. If you fail to do the research, you're gambling! Therefore, do yourself a favor, and go to Vegas to blow your cash because at least you can get hammered for free at the roulette tables.

Best bet is to pick a mutual fund, a paid stock picking service, or a trusted stock picker (Ahemm! - me perhaps), to guide you through the process.

What to expect?
As I have discussed with our fearless Editorial Director, it is acceptable to give the readers of PeopleJam with one growth stock per month to add to your personal portfolio.

These stocks will be growth oriented, relatively safe, and contain multiple reasons why I think the stock will do well over the next few years. For the value investors who would like a more conservative, value or high yield dividend stock pick, please voice your opinion in the comments section.

If this idea takes off, we can increase the alerts to one stock every 2 weeks for those of you who choose to invest on a regular biweekly schedule to coincide with your paychecks.

Stay tuned!

Personal note: any feedback will be much appreciated! This continuing column is essentially designed to help you (the reader), add a few bucks to your retirement fund or speed up your journey towards Margaritaville.

Disclosure: I do not own shares of Apple Inc. at the time of publishing.

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jdotagain's picture

with the way things look right now, i hope that people can trust anyone who is saying where to put money. only time will tell if this is the way to go!


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