You may have heard the saying: Value Investing Is A Rich Man’s Game.
That’s a lie. A blatant, wealth-crushing lie that will leave you mired in poverty for life.
The truth is that anyone, even regular people with limited savings, can use investment as a platform to create wealth and become financially independent.
That’s because of the compounding or snowball effect of value investing; one of the wonders of the world.
All you need is a consistent application of proven investment techniques, which over time can snowball your small amount of money exponentially.
Here are 3 tips you can get started on wealth creation with just $1,000:
1. Put Your Eggs In Multiple Baskets (AKA Diversify Your Investment)
One of the most critical elements in investing is not to put all your eggs in one basket. Use your $1,000 wisely. Diversify and split it 2, 3 or 4 ways by investing in various stocks.
The logic behind this is simple. Putting all your money into a single stock is risky, because that stock could lose significant value. No investor in the world, no matter how knowledgeable or successful, can predict the stock market to 100% accuracy.
Even “sure make money” stocks could backfire and cost you to lose everything. By diversifying, it significantly reduces the risk of that happening, allowing you to grow your money in a safe, secure and profitable way.
2. Understand That Value Investing Is A Long-Term Game
Many investors are impatient. They expect to see instant results. The lack of immediate large profits should not be seen as a failure. Sometimes, stock prices fluctuate between loss and profit, before stabilizing on a more upward curve.
Due to impatience, many investors sell their stocks before that upward curve happens. As a result, they miss out on the snowballing power of the compounding effect. So if your $1,000 doesn’t double or triple overnight, stay calm. The best is yet to come.
Of course, there are cases when signs are clear that the wrong purchase is made quite early on. In those cases, sell. To reduce the chances of making the wrong decision, analyse the company’s business model and profitability over a period of time to accurately determine its growth potential.
3. Model After Successful Investors
Many millionaire investors are not born rich. They were poor once, perhaps even poorer than you. Some did not even have $1,000 to start with.
It’s just that they devised or adapted investment strategies to grow their wealth tremendously. So model after them. Learn from them. Adapt their strategies to your own.
I’m not saying copy them blindly. It doesn’t mean that if they buy stock A, you should rush to buy stock A as well. Look beyond the tactical level of buying and selling, and focus on the over-arching investment strategies they use.
From then on, it’s just a matter of adapting and customizing their strategies to fit your situation, and replicating it on a bigger scale to see massive results.
I hope you find these 3 insights useful. If you benefited, let me reveal to you a “bonus” insight to skyrocket your investments:
Bonus Tip: Attend Mind Kinesis Academy’s Value Investing Masterclass
At the masterclass, we’ll go a lot more in-depth about the tactics and strategies to become a successful investor.
There’ll be detailed case studies, personal sharings, laughter and fun and most importantly… exact, simple step-by-step explanation on how you can get started on value investing, without having deep pockets.
It’s an essential masterclass if you’re looking to become financially free. Even Mary Buffett, the world-renowned investor and daughter-in-law of Warren Buffett, said that what we teach is key for anyone who wants to make money work for you, instead of the other way round.
To find out more and reserve your seat before they run out, do so here