How To Own The Companies That Can’t Help But Make You Rich

(The following content is not a personal recommendation to buy any of the following companies as I am not taking your personal financial situation into account.)

I’ve spent my whole financial career learning how to make the most profits from trading with the least amount of risk. What I’ve found is that learning from the people who’ve already done exactly that already, helped me get there much faster than starting from scratch and making all the mistakes for myself first.

There is no question in my view that the greatest investors in the world do not click the buy button or open their mouths without giving careful consideration to the following:

1. Our Opinion on a Company To Invest in is Irrelevant.

Always ensure your analysis and consensus on a company or the market is backed by historical evidence.

I am not referring to what the price says on a chart I am referring to the historical fundamental and financial facts.

You have a higher probability of being right if what you are predicting will happen, has occurred previously.

By investing in companies that have a great history, you will not only increase the probability of making money but it will give you the confidence you need to continue to buy when prices are cheap.

Your personal opinion does not matter, look at the historical facts.

2. What Does The Market Trend Indicate

Never forget this simple rule of thumb:

Economics and credit (interest rates) will always lead to what stock prices should do.

If the economy is strong, if interest rates (fixed income) are below stock market returns (stocks & dividends) then the stock market is highly likely going to be in a bull market. If the economy is weakening, consumers are spending and borrowing less, the stock market is likely to be weakening.

3. Where to Invest

When you are investing in businesses that are listed in countries that have a rising population, rising immigration and a growing workforce you want to see:

  • wages growth,
  • innovation,
  • higher spending
  • and consumers are taking on credit

The likelihood is the share price of quality global growth companies will go higher and higher over time in those markets. It has been this way for over 120 years and is unlikely to change in mine or your lifetime. The US market is ticking all the right boxes for Where To Invest, right now.

The Answer

If there is a cornerstone to my personal investing it is point #1. My opinion always got in the way of the fundamentals. Whenever I have made a mistake and lost money it was usually because I ignored point #1 and didn’t do the due diligence to back up my opinions.

I can see it all the time in how others invest like I used to. Like me, too many investors fall in love with their own B/S and opinion and don’t stop to look at the obvious facts that have driven share prices higher and lower for more than 120 years.

The problem is to get to higher returns is finding a concentrated number of the companies that suit your investment needs.

How do you do the historical research, which companies do you buy, how do you short list them, how many shares should you buy and how do you know you are not paying too much? It can be overwhelming and time consuming.

The good news is that’s all we talk about at Trading Mastery.

We are always looking at the market for that concentrated number of high-quality global growth companies positioned just right so that in the coming 3, 5 and 10 years they have the potential to see their share prices and deliver us outstanding returns on investment.

If you’d love to join in the conversation to learn more about our ground work, then I invite you to come along for free to my next live online training event where I’ll share with you how we value companies correctly and build rock solid portfolios to build wealth, not only for 2021, but for years ahead. Simply enter your details below for your free pass.

FREE Live Online Workshop:

How to Position Your Money in the Artificial Intelligence Boom

(7:30pm AEST Monday 27th of May 2024)

Enter Your Details
to Reserve Your Place