Article Categories

»	Arts & Entertainment
»	Automotive
»	Business
»	Careers & Jobs
»	Education & Reference
»	Finance
»	Food & Drink
»	Health & Fitness
»	Home & Family
»	Internet & Online Businesses
»	Miscellaneous
»	Self Improvement
»	Shopping
»	Society & News
»	Sports & Recreation
»	Technology
»	Travel & Leisure
»	Writing & Speaking

Reprint Article Code

Category: Articles » Finance » Stock Market » Article » Article Code

How to create wealth in the stock market

How to create wealth in the stock market First and foremost, an opportunistic strategy for creating wealth in the stock market is needed. And the opportunistic strategy for creating wealth in the stock market must have two ingredients, a plan and a goal. The plan must be a definite, concrete plan of investing that would profit you and your family for the rest of your lives. This opportunistic investment plan you begin should not profit anyone else – not a stockbroker, a mutual fund or a financial advisor. This means you have to have confidence in yourself ... read more

Article Title:

Article Body:

How to create wealth in the stock market First and foremost, an opportunistic strategy for creating wealth in the stock market is needed. And the opportunistic strategy for creating wealth in the stock market must have two ingredients, a plan and a goal. The plan must be a definite, concrete plan of investing that would profit you and your family for the rest of your lives. This opportunistic investment plan you begin should not profit anyone else – not a stockbroker, a mutual fund or a financial advisor. This means you have to have confidence in yourself and in your own judgment as to whether the investment plan you begin has merit. And this means that the investment plan would and should have already been proven to you! This definite, concrete plan you begin for creating wealth through opportunities in the stock market must also have a goal. The goal should be clear and specific, and once your have made up your mind to achieve that goal, then go forward and make that goal a reality. What are the opportunistic traits of a strategic investment plan built on concrete that would actually allow the shareholder to profit through all the turmoil of an up and down stock market? The secret for creating wealth in the stock market; no matter what direction the market is heading? As in what appears to be the most difficult investment question of all to answer, the answer lies in simplicity itself – investing in those companies that have a historical record of raising their dividend every year. Whether or not you can take this statement of fact to heart is your own judgment call. But it is this opportunistic trait that can and will create wealth for you and your family for the rest of your lives. A company’s ability to raise its dividend every year, coupled with stock appreciation is a very powerful wealth creating formula! I’m going to provide you with two examples, though there are many more, some with even better results. The two examples are from my book, soon to be published by American Book Publishing – The Stockopoly Plan (where an investment plan and a goal are written in stone). The first example would be a stock purchased in 1990, Comerica (CMA). What led to the purchase of CMA? – In 1990 CMA had a 21 year history of raising their dividend every year. Today’s CMA has a 35 year history of raising their dividend every year. This opportunistic trait in CMA stock has garnished a little better than a 15 percent return a year, compounded annually (just by having the dividends reinvested back into the stock each quarter through those years – I prove this to you in The Stockopoly Plan), for the past 14 plus years. Today’s CMA stock just recently touched a new high at $60 dollars a share, with a dividend yield of around 3½ percent. In April of 2003 the stock was selling around $37.50 a share, paying a dividend yield of around 5% a year. Am I tempted to sell my position in CMA? Do I care if the stock drops from this lofty price back to $37 a share? Why should I? If the stock drops back to $37 a share, my dividends being reinvested back into the stock each quarter purchases more shares, and my dividend income from CMA simply and dramatically accelerates. I am also already prepared that if a buy-out offer is ever made for the company to reap the profits of owning the stock (as well as the possibility of another stock split). The second example is (unfortunately) in my book, also. I say unfortunately because my book is in the final copy edit stage, so no one has had a chance to read and benefit from it, and since a buy-out offer was made for the stock last week or so, the stock will no longer exist (this means a rewrite for me, before publication). The company in question is the Rouse Co. (RSE), which was just purchased by General Growth Properties (GGP). Oddly enough, you’ll find GGP in my book, also – if you bother to pick it up. Anyway, that’s neither here nor there - RSE, on the takeover bid jumped over $16.00 a share in one day! Whew! Why couldn’t they have waited a couple of months until my book was released? RSE had the opportunistic trait of raising their dividend every year since 1993 and I was quite content with its performance through the years. Well, that last paragraph blew my train of thought on this article. All I can think about at the moment is my rewrite. I would like to take this time to explain something to you. I have never considered myself a writer nor am I a stock market professional. I am simply a man with 39 years of experience and a passion for the stock market, trying to share what wisdom those years have given me. When I sit down to write an article, I seldom have an idea on what I’m going to say. It was the same way when I sat down to write my book. I just meant to put down a few words on paper for my 18-year old son so he would have a sound, concrete plan for investing in those companies that make up the stock market (quite frankly – I didn’t want him to blow his inheritance). Whether you find merit in what I say, I have no idea. What I do know is that life is just too short to learn everything you need to learn by yourself, without the help of others. There, now I’m satisfied with that ending! For more excerpts from the book ‘The Stockopoly Plan’ visit http://www.thestockopolyplan.com

Author Bio:

Some other recently published stock market articles

Be A Rebel: Contrarian Investing by Christopher Smith
Buying stock on a hunch that it may go up when all indicators are that the particular stock of interest is destined for a down turn is known as contrarian trading. While this ...

Advantages of Online OTCBB Stock Trading by Praveen Ortec
Over the years all Over-The-Counter Bulletin Board (OTCBB) stocks are traded either directly or by call in. Both processes take much time and causes physical/mental stresses. Now there are a few companies which offer electronic OTCBB ...

Online share trading can be a liberating experience by Martin McAllister
The old world of stock-broking is changing rapidly: the practice of dealing in stocks and shares, for instance, is no ...

The Bulls And Bears Game: Risks And Survival Strategies In Investments by Wain Roy
The stock market is never constant, but one thing that is constant in the bulls and bears game is this question in ...

How Do You React When Your Stocks Are Down by Christopher Smith
How do you react when you've found yourself in a losing position? Do you stick your head in the sand and hope that the stock price will rebound? Trading losses are a fact ...

What You Don't Know About Micro Cap Stocks by Christopher Smith
Most investors think of the major stock exchanges when trading stocks comes to mind. The New York Stock Exchange (NYSE), the National Association of Securities Dealers Automated ...

Publisher Guidelines

You may reprint this article electronically in your newsletter or on your website, free of charge.

If you reprint this article from our site, then you must keep everything intact. This includes the articles title, author name, articles body, authors bio / resource box, the links contained within the article, all copyright notices and the link pointing back to our site. All links within the article must also be made active / hyperlinks.