February 27, 2016  |   

By definition Investing is “expending money with the expectation of achieving a profit”. There are many different ways to invest.

Different types of investments:

  • Bonds
  • Stocks
  • Mutual Funds
  • Real Estate
  • And many many more

While most people want to invest in real estate, there is better way to get a much bigger return. Don’t get me wrong investing in Real Estate is still a great course. However, investing in a company can result in a much larger benefit. You would own a little piece of that company. When they don’t do well, you don’t do so well. On the other hand, when they succeed so do you.

Now not every company is going to be successful and there really isn’t a sure fire way to predict how things are going to go. You can choose the risky route that can show the most return, but also the most risk. You can also play it safe and although small you can somewhat make sure of your gain. However it is also possible that a risk can turn safe later on.

It all depends on if you invest in a “solid company”.

Quick Example

Here we will use Apple as an example of a “solid company”.

Apple is the largest company in history! In fact, just this last quarter (Q1 2015) they had their best quarter. Not only was it their best but also had the biggest quarter in the history of any company. This quarter resulted in billions, 18.4 billion to be exact! Apple has done better than some of the top oil and gas companies. Sounds like a pretty sweet investment to me.

But what if you were to invest 10 years ago? Although it may have been more risky, it would be equally sweet!

To be exact: If you were to have purchased Apple Stock in 2004 you would have over 6 million dollars in returns by now. That is over 40% in returns over 10 years. To be a bit more specific let’s say in 2004 you put 100,000 into Apple stocks. That means, the following year you would have $140,000. Some people work the year away and don’t have the pleasure of making $40,000 in that year. These outcomes don’t even include dividends they would have paid you to own that stock. That is a whole lot of money!! Can you imagine being a millionaire? All for trusting in that company’s success!

This is just scratching the most basic of surfaces when it comes to stocks. You can learn so much more following the ‘Win on Wall Street’ investing guide.