Stocks are like seeds…

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I get a ton of emails from people looking to get rich quick.  They don’t specifically say they are looking to get rich quick but they use language that indicates that is their goal.  The allure of rapid wealth is appealing.  Especially when we look at rappers and athletes who are all young dudes with millions.  The men want that money at a young age and the women want men who are young with millions.  The problem is that is not real.  Well it is real but its not typical.  Most people wont make rapper millions but all of us can accumulate millions with patience and focus.

What does a get rich email look like? “How soon will I get a return”? “What is your current ROI”? “How soon before I can get a distribution”?  These are all genuine inquiries and I welcome them but I want to caution you that investing is not gambling and stocks are not lottery tickets.  As I will discuss later in this post, stocks are seeds. 

It is a little known fact that the average millionaire is at least 50 years old, self employed, lives below their means, budgets their money and does not live a high consumption lifestyle (read The Millionaire Next Door).   There are some exceptions to this rule but I believe you have to aim where the odds are stronger and if you get there ahead of time you will be pleasantly surprised.  It is better to be surprised than disappointed.  It’s better to take a proven path to wealth that is wide and welcomes all than to chase the narrow gap of entertainment riches.

I am reading Zero to One by Peter Theil, cofounder of Paypal, and a constant theme in the book is his reference to the dotcom boom.  What people don’t realize is that everybody didn’t lose during that bubble.  During dotcom mania companies like Amazon launched right along side those whose names we no longer remember (read Pets.com).  That was over 17 years ago.  Amazon is just now rising to dominance.  It has always been a great company but now their greatness is unquestionable.  If someone bought Amazon back in 2000 with their eye on how soon they will get a return or what the current ROI was or how soon they would get a distribution they would have missed out on their wealth. 

Stocks are seeds.  Meaning that the money you plant, creates a tree and then you live off the fruit of said tree.  You don’t eat the seeds and you don’t eat the tree.  Trees take time though.  When you are investing it is important that you aim super long term.  We are not traders, we are not looking to churn money out of the market.  While there are people who make money doing that, most people don’t believe you can be a wealthy trader.  However, there are multiple examples of wealthy investors/owners.

The reason we invest the way we invest ($25-$100 monthly) is because we wanted to trim off a little bit of money that you wont miss but over time as it compounds and adds to the principle you will see a tree emerge.  We trimmed off your seeds and now we put them to work.  It is hugely important that you know that there will come a time when you can live out of the portfolio income as the wealthy do.  That is where you want to be.  Although rapid riches are appealing, they are soon fleeting.  Grow your long term wealth with Todd Capital by emailing info@capitaltodd.com We would love to work with you.

Be great,

Todd Millionaire

 

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