вторник, 4 февраля 2020 г.

Invest Like a Billionaire With 1 Simple Trick

Timor Invest
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Financial advisers are wonderful. I have friends in the field.

But they aren’t very original. All seem to use the same pitch.

At some point in time, they tell prospective clients something like: “If you invest $200 a month every month for 40 years, your account will be worth $1.2 million.”

The problem is, most of us don’t have 40 years to retirement.

I feel like they’re saying we need to jump in a time machine to avoid doom.

While they don’t have a solution, the advisers have math on their side. With enough time, anyone can enjoy financial security.

And with one simple trick, you can greatly accelerate your gains.

Time Grows Wealth

Wealth grows over time because of compound interest.

Albert Einstein supposedly called this the “eighth wonder of the world” or the “greatest invention of mankind.”

It’s unlikely Einstein ever said anything like that. But compound interest is the key to wealth accumulation. And it’s easy to understand.

If you invest $100 and earn 10% a year, after one year you have $110. That includes the original $100 plus $10 in simple interest.

In 25 years, your $100 grows to $350.

But with compound interest, the account is worth $1,083 instead.

Great Investors Know About Compound Interest

Great investors are great for a reason.

Often, they see things differently. Compound interest can illustrate that point.

For example, the world’s greatest investors don’t always think in terms of years. They might think in terms of weeks or months or even nanoseconds.

They compound wealth faster by continuously making new investments that generate profits they can reinvest.

Billionaire Ken Griffin’s strategy is an example of how to grow wealth fast.

His hedge fund, Citadel Securities, is a high-frequency trading firm. It accounts for about 20% of all stock trading in the U.S.

A $10,000 investment in Citadel’s first fund when it was launched in 1990 would be worth more than $1.3 million today, an average gain of about 19% a year.

A similar investment with Berkshire Hathaway CEO Warren Buffett would be worth only about $315,000 today. And an S&P 500 Index fund investment would have increased to just $131,000.

Griffin focuses on the short term, and the results are impressive.

Success Without a Time Machine

Could you trade like Griffin?

Yes, I believe you can.

You can’t use the same high-frequency strategy. But you could keep your money working all the time.

That’s an important part of creating wealth: making money work faster than the average investor does.

That’s how Griffin made his $13 billion fortune.

If you compound wealth quickly, you don’t need to start investing 40 years before you retire. You just need to realize it’s important to do things differently than the average investor.

I like short-term trading because of the power of compound interest. Instead of compounding once a year, I compound three or four times a year — or more.

A Special Announcement

My colleague Jeff Yastine has uncovered a new class of investments that you need to learn about. It’s likely you won’t hear about them anywhere else … yet they can generate life-changing gains.

On Thursday, Jeff will reveal his findings in a special presentation. Be on the lookout for an email from Jeff for full details.

Regards,

Michael Carr, CMT, CFTe

Editor, Peak Velocity Trader

P.S. Our team is on a mission to help 1 million Americans reach millionaire status in the next five years or less. And we want you to be one of them. But to get started, you need to watch Jeff’s FREE presentation on Thursday. So, check back later for more info.

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