“Although it’s easy to forget sometimes, a share is not a lottery ticket… it’s part-ownership of a business.” – Peter Lynch
Merry Christmas WF Family!
What a year it has been. This website has blown up from where it used to be a year ago. I am excited for what 2019 brings us. But this isn’t some sappy post about that. Rather, as today is in fact Boxing Day, it is about why you should (for the most part) invest in the companies that you have grown to love!
Many of the clothing brands, toothbrushes, video games, and cars you drive have a major company behind it pulling the strings to make sure that you are getting your moneys worth and you are constantly coming back to buy more.
The consumer mindset is very simple. Buy, buy, buy.
But what about us? The wealthy family?
If we see that our friends and family members are constantly buying things that they cannot do without, maybe it is worth considering whether the company behind those items have a publicly traded stock.
What is the point of buying a product you know and love and not get something back for helping those companies in your little way stay afloat? You should own a part of those companies!
I have asked employees who work at companies with publicly traded stock if they share a piece of the pie and 99% of them either didn’t know what a stock was, didn’t know that where they worked was even a publicly traded company, or simply didn’t even know if they were capable of investing in their company’s stock!
Talk about slave trade.
This is why buying stocks is essential to wealth creation! You are essentially a small percentage owner of major companies and you don’t have to wake up and go into those offices every day! Rather, you sit back and enjoy the appreciation of your shares. Or even better, get the appreciation of those shares PLUS a dividend every month or quarter for just owning the stock!
Now you may be thinking, ‘stock prices go down all the time for those companies!’. You would be completely right! But not all of them do, and even the ones that do bounce back…it’s the way the market works.
Think about it this way…
If you bought $5,000 worth of Home Depot shares at $42 in Jan 2012, it would be worth $20,000 today.
If you bought $5,000 worth of Apple Inc. shares at $58 in Jan 2012, it would be worth $13,500 today.
If you bought $5,000 worth of Starbucks shares at $23 in Jan 2012, it would be worth $13,600 today.
If you bought $5,000 worth of Alphabet (Google) shares at $326 in Jan 2012, it would be worth $15,700 today.
And none of these are including dividends that some of them provide – which would increase the amount you would actually have made, exponentially.
Of course there are those companies that don’t do well, but with every company that doesn’t do well in the stock market, there is one that flourishes.
I will never forget the moment I decided to start investing in stocks. One YouTube video I stumbled across back in 2014 had a lady ask a kid if he would rather play video games than invest in stocks and he said that he would rather own a part of that company making the video games.
Think about that before you go out and buy something that could have purchased you a handsome amount of shares of that same company. This is the difference between consumers and investors. Consumers complain about not making enough while they spend on what they do not need. Investors spend but make sure they get their money back by investing in the same companies that they enjoy, tenfold.
You can’t get rich filling someone else’s pockets. But you can get rich by owning a percentage of those pockets being filled!
Until next time,
Live Long and Prosperous.
Merry Christmas, and a Happy New Year.
Value Investing Millennial Jahnome McEwan is releasing his second edition of his best-selling eBook, called 50 Rules for 50 Fools: The Second Edition on January 30, 2019!
Click here if you want to catch up with his first edition!
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This website and its contents are solely opinion-based. The information provided does not constitute investment advice. Accordingly, due to the information on this blog only being of personal opinion and experience, it should not be considered professional financial decision advice. The ideas and strategies expressed should never be considered without first assessing your personal and financial situation, or without consulting a financial professional. My thoughts and opinions will change over time as I learn and accumulate more knowledge.