How much can you make from a $100 investment?
This answer depends on many factors, the main being 1) what you're investing in and 2) how long you stay invested. If you want to do conservative stocks, you could average 6-8 percent per year over a large period of time (10 years+). But keep in mind that $100 is such a small amount for stocks. A good amount to start with is $1000. But if $100 is all you can afford right now, then this is better than investing nothing. If you want to invest in stocks but don't want to do research on what to buy, then go with a low-fee index fund (look into Vanguard). If you want to do bonds, you'll get very low returns on the safe ones (due to very low interest rates). If you're young, meaning you statistically have many years left to earn income, go with stocks. Otherwise, you'll earn 2-3% annually - quite a pittance. If you want to invest in individual stocks, here are some rules (#s 1, 4, & 6 apply to index funds):1) You need a long horizon. 1 year at a minimum, but I prefer 5 years.2) Do your own homework. Convince yourself that this is a good company with a bright future. Don't buy something because an analyst told you to.3) Buy the stock at a good value. Don't give into hype. When you give into hype, you buy high. And when you buy high, you sell low.4) Don't panic when, not if, there is a market correction or crash. Remember that these things, while never fun, are normal.5) Diversify. The different sectors don't necessarily move in lockstep, so it's good to spread out your bets (but not too much). As one sector falters, another may win. And vice versa.6) Automatically reinvest your dividends if they are small amounts. If they are fairly large, then you should manually allocate these amounts.If you follow the above 6 rules for stocks, you can be reasonably sure that your investment will be profitable in the long run.Of course, there are other assets to invest in besides stocks and bonds. For example, you could put your money in real estate, precious metals and other commodities, and art and other collectibles. However, $100 won't get you much in these categories.
Why should you NOT invest in stocks?
As with any of Investment Vehicle, investing in Stock Market too has its own Pros and Cons. Lets start with Why we should NOT invest in Stocks first.Stock Market is risky and the probability of losses are high. So if you don’t want to take a lot of risk with your money, stay away from it.It takes time and effort to invest in Stock Market. If you don’t have that much time, its better to stay away from it.It requires financial knowledge, ability to read charts, accounts, balance sheets (and the list goes on…)Almost everything going around in the world (from wars to elections to recessions) has an effect on Stocks. Which again increases the riskiness of markets.The returns are not fixed (compared to other ways of investments like Fixed Deposit, RD, Government Bonds). So after all the hassle, you won’t even know what you would earn.However, all said and done, there is one Advantage of investing in Stock Markets which attracts all the investors. It is that in ‘Long Term’, Stock Markets give better returns than any other Investment Vehicle available. Hence, one should put some part of their money in Stock Markets. The best way to do it is via a Systematic Investment Plan (SIP) in Equity Mutual Fund.Hope this helped!Cheers!Viren
Is buying a watch a good investment?
Is buying a watch a good investment?Depending on what watch you buy, it’s one of these three categoryFashion statementUtilitarian useCollectionSo is a watch a good investment?It’s arguable, but in my honest opinion in all those categories it is or it isn’t.If you buy a Rolex to use as a tool, because you’re a mountain climber = bad investment.You buy it as a fashion statement = good investment.Again, if you’re talking investment, you’re talking ReturnOfInvestment or ROI.I know network marketers that are very succesful because they went and bought fancy clothes, nice watches, fast cars and provided the image of luxury to their client.It was a good investment with high ROI.So, you know best if it is a good one or bad one.I’d say that a watch is a tool, so for me, the looks on a watch are less important, and I’[m more interested in a good mechanism, good case & fairly price acceptable.My favorite watch so far is the SEIKO SARB Alpinist, it’s elegant and useful, a great mechanism inside.Also there is talk about replicas or counterfeit watches, which are made by licensed or unlicensed producers and their quality varies greatly, from low quality model to high quality exact match replica. I own a Rolex Submariner replica, which i purchased online.So, to me a watch is a tool & I’ll invest in it if it’s worth the use. If not, I’m wasting money.[1] Watches By James - Comparison between fakes and genuine watches[2] - Perfect Watches Website - Where I bought my replica Rolex fromFootnotes[1] Watchesbyjames.com is for sale[2] http://perfectwatches.to
If I buy a Rolex today and keep it in a perfect condition for 50 years, how much would it cost and would it be a wise investment?
I bought my first Rolex in 2010 at the price of $3,800 while it was retailing at $4,800 at the time. Today, in 2017, that same watch in totally unworn condition is worth around $11,000. We are talking of a compound annual growth rate of 16.40%. Do you know a lot of investment that are performing better? Crazy, right?Now, not all Rolex watches would perform this way. Here are some elements that you should consider to maximize the value of your investment and its returns.Buy a Professional model. Submariner, Daytona or GMT. No Explorer, no Datejust, no Milgauss. Stick to the classics.Buy steel. Forget those horrible diamonds, full gold watches or even worse, two-tones steel/gold watches. Those are watches where you can actually lose money.Keep it unworn. I mean it. The watch should sit in a safe and never see the light. If the watch has protection stickers, do not take them away.The watch must be full set. Keep literally everything, boxes, papers, bills, gifts, bags. E-V-E-R-Y-T-H-I-N-G!That leads us to the main question. Would that 16.40% annual growth rate will continue over the years? I highly doubt it. You will hit a plateau. No one can tell how it will behave in the course of fifty years versus other type of investments.Would I do this myself? Very unlikely as well! I love watches too much to keep them unworn in a safe. Hell, I won’t even consider making any decision that would engage me for such a long period!Buy wisely, invest in things that you like and you might see the value of your collection growing over time but usually, collectors aren’t investors.See you in fifty years!
Is silver the best investment opportunity of our life time?
Edit: Toned down the negativity. Reworded my post more positively.———-The simple answer is no. Silver is not the best invesment you could ever make.I must confess not having much understanding of the fascination with gold, silver or any other precious metals. I can comprehend their value in products or as a collectible (ie store of wealth). Even that their prices should appreciate as their rarity increases. However, that they should be regarded as investments defies my comprehension.The reason is simple: on their own, they provide no value outside of their industrial uses. In accounting terms, they are the cost of goods sold, period. They are not and should not be regarded as assets.Compare this to something like a company which holds several asset classes (machinery, real estate, etc.), offers a solid product for sale, and derives income and profits from these. Why would you prefer a piece of metal over this?I can only recall the ludicrous valuations silver and gold reached back in 2011. Prices were going bonkers. And guess what? One of my best trades ever happened when I shorted gold right at the 1900 top in September 2011. I had earlier come across an article stating caution regarding silver, and noticed in the comments how vehemently people defended its value. I missed the sell-off on Silver, but I was darned if I’d miss the one on Gold. It’s the best contrarian call I’ve ever made.No, good investments are assets which provide long-term value in their benefit to society (ie profits, product, services, etc). Companies, machinery, real estate. These are tangible. Gold and silver are metals and do not produce anything. Be very wary of the rabid gold proponents to whom these are the Nirvana of wealth.Finally, what I personally regard as the best investment is people. People provide the single best returns of any asset because they are irreplaceable. Special, unique and well-positioned talent is utterly invaluable. People brought us to the moon. People have created nations, cities, industries, and multitudes of inventions from these industries. They form companies to better produce these goods, and this is the vehicle in which you can invest your money.Given this, people are and always will be the best possible investment you could make.