Earn money from stocks

Earn money from stocks 

Investing in a stock market is easy, no matter the difficulty. It requires passion, patience and discipline. In addition, you need to have a thorough knowledge of the market. In addition to the forces at work and analytical skills.

Although there is no safe injection formula or one answer to reach the stock market, some general indicators will increase your chances of getting them.

In fact, the late Benjamin Graham's father once said: "By investing real money, you can do - the last time - for commercial and buying purposes, but the creation of money and the Return on Equity Capital The roles of owning and maintaining their livelihoods, interests and dividends increase by half in the long run.

Today, investors generally refer to Graham's strategy as "incessant buying." To be clearer, as a co-owner of common stock, you want to specialize in the aggregate and ask for a long-term profile, which is an absolute minimum for the partner and aims to maintain each new position for 5 years. Well-run companies that have a history of best financial practices and a friendly management with stakeholders.

Major investors such as Warren Buffett and Charlie Munger have more than 25 checks on stocks and businesses, or even more than 50 years of their money. In addition, alternative investors follow their footsteps every day, take small sums of money and make long-term investments. Here are some examples of Ar 2 notes:

Retired Office Agent Anne Schaefer has built her $ 22 million portfolio through a 50-year investment;

Retired Secretary Grace Groner created her $ 7 million capital portfolio in 1935 with just 3 shares of $ 60.

However, most new investors do not understand the specific dynamics of creating cash from equities; This is where wealth really originates, or works so far.

We provide resources on fairly sophisticated topics: project analysis, liquidity indices, capital gains taxation techniques, to name but a few, but the key to eliminating them. So have a hot cup, sit comfortably in your favorite reading chair and let us guide you through the simplest version to fit the whole picture.

Acquisition  in most operating companies in real time

When you have shares, you buy part of the company. Horizon Fudge Company is a fictitious company with sales of $ 10,000,000 and net income of $ 1,000,000. In order to raise funds for growth, the company's founders contacted the Associated Investment Bank, which sold shares to the public as part of an initial public offering or IPO.

They might say, "We do not think their growth rate is the best. So we have this precious plan so that potential investors can get their investment on September 11, and even if it produces ... for the whole of society. (more than $ 11,000,000 in contributions)) (11 to 11 million euros) The initial investment of 1 million Yan divided by the net profit = September 11th). The general public Insurers may say, "You know, we want to sell the shares at $ 25 a share because of the cheaper shares, so we can sell the company in 440,000 pieces or $ 4,000 (440,000 shares x $ 25 = 11,000 000 USD). 

This means that each "unit" or each share is entitled to 72,772 dividends ($ 1,000,000 in earnings ÷ 440,000 shares outstanding = 72.72 per share). This number is basic EPS (minimum earnings per share). In other words, once you participate in Harrison Fudge, you make the right purchases for your benefit.

If you accumulate one hundred shares out of 2,500 shares, you make a profit of 2,272 per year, regardless of the future growth (or losses) generated by the company. If you believe that resettlement management can generate sales, your benefits can reach five times in certain years, which is a very worthwhile investment.

How much do you believe depends on your assigned capital

Be that as it may, you will not really see the benefits you possess 72 2.72. Instead, the administration and the board have some options that can determine the level of success of their actions:

This will send you cash dividends in part or in part on your income. It is a way of  returning capital to shareholders. You can use this money to buy additional shares or pay for any method you work on.

Redeem free market shares and destroy them.

Reinvest the funds in future growth through additional capital expenditures, such as setting up factories, additional stores, hiring additional employees, increasing advertising or expanding profits. Sometimes this can be accepted by looking for acquisitions and mergers.

This boosts the record by reducing debt or increasing assets.

What is good for you as a co-owner? It all depends on the speed of management involved in reinvesting your money. If you have good deals, such as Microsoft or Wal-Mart, for a fraction of your current size, any cash dividends may be miscalculated as a result of these funds. At a higher rate.

Wal-Mart was made public at the beginning of the decade, earning many hours in investor stocks. It's incredible. This type of income is usually found in fairy tales. However, under the direction of the Walton guided missile, the Bentonville merchant succeeded and succeeded in creating a large number of colleagues, truckers and people sharing the doors. Recipe

Berkshire's wife does not pay dividends, but the United States does. Bancorp decides to pay dividends and share purchases annually to shareholders. Despite these differences, they are able to attract the wrong price (especially if you ask for quality space) if they work at the right price; For example, the PEG size ratio adjusted for a cheap dividend.

Some of the money you earn

Now, when you look at this, it's easy to realize that your wealth is fundamentally built:

Increase in the value of the share. In the long run, this could be the result of a market that expects excessive profits from growth or redemption of shares, and the creation of each share represents a significant acquisition for the company. In other words, if a company valued at $ 10 per share grows by combining growth and share buyback in a year or two, Wall Street should have about 20,620 per share over a decade. Equivalent ratio P / E.

Dividends If you double the dividend after the payment is made, you will actually receive cash in the form of a signature in the mail, a cash deposit in your account, a bank account or a bank account, or additional shares bought back in your name. .
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