Building a fortune's no easy business, but buying quality dividend-paying stocks is a good way to start going about it. If managed properly any accumulated wealth can be passed onto future generations and the benefits of multi-generational investing mean you too can build a dynasty of wealth.
One drawback with American style dynasty (everlasting) trusts are estimates that such a trust setup by a couple with two children today, may have a rather unmanageable 3.4 million beneficiaries claiming an interest 500 years down the line!
However, with some proper legal advice and sensible stock selection the dynasty planning starts here.
Nowhere better to begin than the Commonwealth Bank of Australia (ASX: CBA), because truth be told, if it ever goes under we're all done for! Analysts are predicting profit growth of 10% for financial year 2014 alongside an estimated $8.5 billion net profit.
Australia's second oldest public company Washington H. Soul Pattinson and Co. (ASX: SOL) is a diversified investment business that has built substantial stakes in many businesses over time, including pharmaceuticals, commodities, materials, financial services, telecommunications and other equities. Its most recent star holding high-flying telco TPG Telecom Limited (ASX: TPM).
Incorporated in 1903 it's a $3.6 billion advertisement as to why time in the market trumps everything else.
Woolworths Limited (ASX: WOW) is another business of such dominant scale its almost certain to be feeding Australians for many generations to come. With a rock solid balance sheet and perpetual growth runway it looks a perfect inter-generational investment.
As one of Australia's most brilliant scientific companies Cochlear Limited's (ASX: COH) life-changing hearing aid technology deserves the support of any philanthropic focused investors. Its futuristic products allow profoundly deaf people to hear for the first time, and this provides the base for a well supported destiny.
Foolish takeaway
Take care to choose companies that will stand the test of time and pay reliable incomes and you too can build a dynasty of perpetual wealth for future generations.
