It is a dream of almost every investor to strike it rich on the stockmarket.
Yet most are convinced that accomplishment is out of reach of the individual, everyday investor.
But attaining that millionaire status is definitely possible.
Just ask Warren Buffett, chairman of Berkshire Hathaway, who is now one of the world's richest individuals.
When he emerged from college at the age of 20, he had almost $10,000 saved from his childhood businesses.
According to Forbes, he's now worth an astonishing $62.9 billion.
And more than $60 billion of that has come since his 60th birthday…
While I can provide no guarantees that you'll be able to make that kind of money, I can promise you that there are fortunes to be made by individuals like you and I.
And the truth is, it's never too late to start your investing journey!
As the old Chinese proverb goes: 'The best time to plant an oak tree was 20 years ago. The second best time is today'.
And as you saw above, all it needs to cost at first is a measly $10,000!
Sure, it might sound like a large outlay to begin with, but when you understand the possibilities of what could be achieved with that amount, you'll realise just how little a sacrifice it truly is…
You see, when you're investing in the stockmarket for the long term, just like Buffett, you have compound interest working with you.
In a recent article titled: "The lazy man's way of becoming a MILLIONAIRE", we highlighted just how explosive this tool can be.
It showed that by investing just $10,000 initially and then making a small monthly contribution, you could turn that small amount into something enormous.
I'm talking 7 figures in just 20 years…
Just imagine what you could do with that kind of cash.
The problem is, it can be difficult knowing where to begin!
There are more than 2,000 companies listed on the ASX and with the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) trading at a six-year high, you can be sure that plenty of them are now expensive.
So I wanted to put together a list of companies that I believe are trading at good value right now. That is, if I had $10,000 to run wild with on the sharemarket, here's how I would be spending it…
1. M2 Group Ltd (ASX: MTU) would be a solid addition to any portfolio, and is a great way for investors to gain exposure to Australia's booming telecommunications industry. While it is nowhere near the size of Telstra Corporation Ltd (ASX: TLS), it has plenty of room left for expansion. This growth will be propelled by its ownership of subsidiaries like Dodo and Primus. Given its estimated 4.2% fully franked dividend yield, I'd be happy to buy $3,000 worth of shares.
2. Veda Group Ltd (ASX: VED) is another solid company well worth considering. Veda is a data analytics group that only made its debut on the market late last year. While it started off like a bull out of a gate, it has since dropped back to a much more reasonable price, giving investors like you and I a far more attractive buying opportunity. From $10,000, I'd be willing to allocate $2,500 to the stock.
3. Cash Converters International Ltd (ASX: CCV) would also make my $10k portfolio. While it is still a relatively small company (its market capitalisation is just $491 million), it is still a very dominant player in its industry as a retailer specialising in the sale of second-hand goods. In addition, it also offers short-term loans to individuals for a healthy profit. Given the nature of its business, Cash Converters is also a good stock to be holding if the economy were to take a dive. I'd happily allocate $3,000 of my remaining $4,500 to Cash Converters.
4. Webjet Limited (ASX: WEB) also deserves a call-up, albeit it with the last $1,500 of my capital. While its growth potential is just as great as any of the other companies that made it to this list, I would simply allocate less cash to it given it is a riskier stock (small-caps are often more volatile investments). However, more and more travellers are organising their entire trips (including flights, hotels and car hire) online and Webjet is in the box seat to benefit.
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So there you have it – an idea of how I would spend $10,000 if I had that amount to invest today. While I already own Cash Converters and Veda Group, Webjet and M2 Group are both sitting atop my watchlist and could well be the stocks I look to acquire next.
