Did you know the Australian stock market has achieved, on average, an 11.7% annual return over the past 30 years?
That turns $10,000, with profits reinvested, into $276,436.
To put it another way, 30 years ago just $36,175 would be $1 million today!
The bad news is, that was yesterday's returns. There's no guarantee the market will perform so strongly in the future.
But the good news is, that was yesterday's returns. There's every possibility future returns from the stock market could be just as good, if not better.
Indeed, that was just the average, imagine what the gains would've been if you could've beaten the market!
And that's exactly what I intend to do with the help of some great companies…
1. Senex Energy Ltd (ASX: SXY) is a mid-tier oil and gas company focused in the Cooper Basin of South Australia. Recently its shares went into a downward spiral following the release of its FY14 results. However, Senex is a great long-term play on rising gas prices throughout Australia and abroad. With a growing reserve base and low costs, the future is as bright as ever.
2. Money3 Corporation Ltd (ASX: MNY) is a small-cap financial company which provides fast approval for loans ranging from $100 to $20,000. It has a growing branch network but is also experiencing strong growth through its online offering. At today's prices it yields a dividend of 3.5% fully franked.
3. Computershare Limited (ASX: CPU) is a global share registry company. That is it stands between shareholders and companies' listed on the market. It provides critical services such as dividends payments, dispersal of voting documents and more. Computershare will be a big beneficiary from rising US interest rates and a lower Australian dollar.
4. Cash Converters International Ltd (ASX: CCV) is like Money3 growing into the lucrative small loans market. These services compliment Cash Converters' existing franchises by providing a steady stream of customers in need of short-term finance. However, Cashies is also growing its store network internationally, in addition to rolling out new services such as Carboodle.
5. Shine Corporate Ltd (ASX: SHJ) is one of Australia's premier personal injury law firms, with an expanding presence throughout the country. The group only recently listed on the ASX but has been a glowing success ever since, has two directors which hold nearly 50% of all shares (so you know their interests are aligned) and its share price is not demanding.
Following a few basic rules, I believe everyone can make decent returns from the stock market. With four of the above five companies already in my portfolio, I think there's every chance I can do better than just average.
