Invest successfully in finance: earn money, let others work

Wealth is mostly based on smart long-term strategies and perseverance. Then you can let others work for you in your sleep. But long-term thinking is not that easy.

Invest long-term - get rich in a sleeping car

The successful long-term investors enjoy a good reputation on the stock exchange. They are considered like dinosaurs that in a distant time could seize the moment. "Yes, back in the 80s and 90s, yes, shares were still cheap back then." It is completely overlooked that a long-term and consistent investment policy fundamentally offers the chance of capital growth clear elevated. Unfortunately this has been forgotten. The financial system of the big banking industry tends to prefer short-term action until the next picket fence.

When was the last time your bank or financial advisor advised you to buy an attractive Action or to keep a first-class fund in the portfolio for at least ten or 20 years? Even in times of financial turbulence? Have you been shown good examples of how such long-term investment approaches have recently paid off for other investors? Never? I wouldn't be at all surprised. The success stories are on the Hand. Look at price movements over long periods of time and see how fast those periods have finally passed. I would like to mention just two examples here.

In April 2003, Nestlé shares were listed at EUR 18 and had risen to EUR 2016 by April 65. And on the Frankfurt Stock Exchange, the Darmstadt-based Merck KGaA has also developed extremely well with an increase in value from EUR 23 to EUR 104 in the period from March 2003 to April 2015. This Pattern has been in effect since the Second World War in stages of ten to 20 years. Exorbitant asset gains of this kind are therefore not an exception in the years 2003 to 2016. In addition to the gratifying price increases, there was also a warm shower of dividends for many stocks. And with an increasing tendency every year.

Longevity counts

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Many investors simply do not want to admit this. The well-kept secret is rarely revealed: sitting patiently in first-class values ​​was and is the best Methodto with his Capital move forward stress-free. A value investor friend of mine calls it "get rich in the sleeper car". It requires a rethink. Let's use an old formula. When determining the share ratio, the rule of thumb used to be: »100 minus Age«. So if you were 30 years old, you should invest 70 percent of your wealth in stocks. Those who were 60 years old, on the other hand, held only 40 percent of the shares. The topic »holding period« was considered in a similar way.

For 20 years now, I have seen ourselves as pioneers in a statistical no man's land. In times of ever better medical care, with a life expectancy that can easily exceed the 100-year limit, I interpret the word "long-term" differently than in my youth. I am all the more in favor of long-term prospects for investments since fixed-interest income has been set to "zero", as it were.

In the previous scheme, the typical investor is used to thinking long-term only in the life section from 40 to 60 years (possibly). But today it is also advisable for the sixty-year-old to start again with a 20-year perspective invest. Because turning 80 isn't a thing these days Art. In view of the uncertain state pension system, I would fundamentally align my investment strategy with the long term. Regardless of my age. On the way to real financial independence, traveling in a sleeping car is simply more comfortable.

Just do nothing - a good stock exchange rule

The old stock marketers have always known: "Back and forth, make your pockets empty." However, the broker and stock exchange industry is looking for as many transactions as possible. Smart investors are prudent and calm. They follow advice that bankers rarely hear: just do nothing!

Warren Buffett (85 years old) once said in Omaha: "There are times in the stock market when the brilliant investor is characterized by doing nothing." And his companion Charlie Munger (91 years old) from California also stated: "A really good stock is the one you can sit on for years.” This has nothing to do with a plea for laziness. However, it is usually misunderstood that wealth does not arise overnight. It has to mature. Instead of nervously reading the stock market comments every day studieren, the prudent investor can do better with his time: read, listen to music, something for them Health do.

Beware of actionism

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Building a fortune has nothing to do with it actionism to do. It takes a long term Strategy. It boils down to a simple formula: building wealth isn't all that difficult, but it's pretty boring. And there are still stocks that offer this long-term potential today. Take a look at the Fielmann AG share. In the past eleven years, the value has more than quintupled!

My grandmother's childhood friend, Walter Beiler, was a well-known broker with headquarters on the Frankfurt and Düsseldorf stock exchanges during the economic boom. "What the boar in the forest is on the stock exchange Walter Beiler," he was described in the press. As a young man, I visited him in 1973 in his stock exchange office in the gallery of the Düsseldorf stock exchange. Carefully and quietly, he pointed out a colleague in the next office and said to me: "Watch out, he's a really great man with stocks. It often doesn't do anything. ”At the time I was amazed at this statement. Today, more than 40 years later, I appreciate his advice.

Building Wealth: The Ten Percent Model

Most workers are approaching a pension gap in old age. Debt it's not the government's fault. For Boy People, who are at the beginning of their professional career, there is a good solution. Financial independence in old age can only be achieved with a long-term savings strategy. Systematic saving forms the basis for future capital investments. The word "savings" sounds a bit old-fashioned and is not popular with many people these days. But without the simple “spend less than you earn” approach, retirement provision won't work.

What is the best way to approach this topic? What advice should you give young people? This reminds me of a simple but effective savings model from my past: when I started my career at Dow Chemical in the 80s, we had the opportunity to invest 10 percent of our gross wages in company shares. The nice thing about the model was that this 10 percent of the gross wage was withheld from the payroll up front each month. So you didn't even get hold of this savings amount. It was like the monthly salary would have been reduced by 10 percent.

The automatism of this savings model is the linchpin. The system of basing your consumption and spending behavior on a 10 percentage point lower salary from your first job is a good way of setting the course. With every increase in salary, the deductible savings amount is increased accordingly: always 10 percent of the gross salary. Whether the employer withholds the monthly amounts or whether you organize yourself by means of a standing order is ultimately the same. Anyone who uses this savings model continuously, month after month, winter and summer, for decades, without going back and forth, will one day be amazed. Without ever having felt a restriction in his life, the employee grows a considerable fortune.

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