 |
Invest in the Stock Market for the
Right Reason
Written by: Charles O'Melia
Investing in the stock market is not purchasing a stock at 25
dollars a share, hoping it will go to 35 so you can sell it, then
hoping it will drop back to 25 so you can buy it back, so that you
can sell it again at 35, and so on and so forth.
In my opinion, that is gambling. And, I would imagine, some would
believe that ANY investment in the stock market is gambling.
So, for the sake of argument, let’s assume that every investment in
the stock market is a gamble (whether you’re trading in and out of a
stock position or a long-term investor). If every investment in the
stock market is a gamble, then, how does the investor/gambler stack
the odds in their favor?
What are the right investment choices for the right reason that will
stack the odds in favor of the individual investor, to receive a
return worth the gamble? What is the RIGHT reason, and what are the
RIGHT choices to make when investing/gambling in the stock market
when looking for a return better than a passbook savings account, a
CD, Bond or Mutual Fund?
The right reason to invest/gamble in the stock market, believe it or
not, is not to make a profit! That’s right! The right reason to
invest/gamble in the stock market is to provide an INCOME! Actually,
I’ll go even one step further! The right reason to
invest/gamble in the stock market is to receive an EVER-INCREASING
CASH income every quarter from every stock that you own.
Once you have set your mind toward this right reason for
investing/gambling, then the right choices will become very clear.
If every stock owned (every quarter) is going to supply an
ever-increasing cash income, then two right choices, right from the
get-go, are necessary. One, that every company’s stock purchased
must pay a cash dividend, and two, that every cash dividend paid by
the company would have to be rolled back into more shares every
quarter, until retirement. Those two right choices means that every
quarter there will be more shares of each company owned, which, in
turn, will create an
ever-increasing cash dividend income (as long as the companies owned
maintain their dividend).
To stack the odds further in favor of the investor/gambler, another
right choice is necessary. Only those companies with a long-term
history of raising their cash dividend every year will be chosen.
This right choice will provide a yearly increase in the cash
dividend income for the retirement years, when the dividends are
being sent home to help ends-meet, and are no longer adding shares
to the portfolio. The rising yearly dividend increase will,
therefore, help off-set the risk of inflation.
Now, there is another right choice to make. To receive the best
return on your investment/gambling dollars, all companies chosen
will be purchased commission-free. All dividends from each company,
each quarter being rolled into more shares, will be commission-free.
Therefore, every cent earned in ever-increasing cash dividends every
quarter and any extra cash put into your investment/gambling plan
will work toward always increasing your cash-dividend income.
By investing for the right reason and using the right choices you
automatically become a long-term, dollar-cost averaging, buying
investor/gambler of company’s shares, free of commission charges,
whose companies raise their dividend every year, with the investor’s
/ gambler’s idea or purpose being to provide an 85% tax-free income,
through ever-increasing cash dividends for the rest of your life, no
matter what the price of the stock at any given time in the market
place may be.
About the Author
Charles M. O’Melia is an
individual investor with almost 40 years of experience and
passion for the stock market. The author of the book ‘The
Stockopoly Plan – Investing for Retirement; published by
American-Book Publishing.
To invest in a copy of The
Stockopoly Plan visit:
http://www.pdbookstore.com/comfiles/pages/CharlesMOMelia.shtml |
|
