Imagine being able to make an absolute mint on the stock market by barely lifting a finger.
It's a nice concept to think about, isn't it?
While we could otherwise be slaving away at our 9 to 5 job, or working until we're 70, we could instead be making the big dollars by hardly doing anything at all.
Until now, you (like most other investors out there) have probably been under the impression that the fortunes can only be made by the professionals. That is, the guys with the wiz-bang computers and access to key market data.
But the truth is, anyone can do well in the market.
The normal, everyday investor doesn't have to settle for second best.
In fact, you could say that investors like you and I actually have an advantage!
That's right, because fund managers are often restricted to investing in the market's largest stocks while we have access to a plethora of companies boasting far greater growth potential. That includes companies like Cash Converters International Ltd (ASX: CCV) and Vocus Communications Limited (ASX: VOC) which are both expected to expand strongly in the coming years.
These and many other growth stocks have the potential to smash the returns of the benchmark S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO).
So how can you make your million?
I won't say that getting rich is necessarily easy – if it was, everybody would be worth millions.
But by remaining patient and maintaining a high level of self-control, that goal is certainly attainable. In fact, if you have those two attributes under control, you're already halfway there!
Let's take a look at a quick example and I'll show you why both attributes are vital in your journey to making a fortune on the stock market.
Say you invest as little as $5,000 today, and then inject $1,000 into your portfolio on a monthly basis (it might sound like a lot now, but by making small sacrifices in your everyday life it is often achievable). Now, the Australian stock market has returned, on average, 12% per annum over the last 114 years. I'm going to be a little more conservative in my example, and use an average return of 10%.
If you were to continue with this process over the course of the next 25 years (like I said, it requires patience and self-control) – that is, not withdrawing any cash at any stage and reinvesting all profits – your initial $5,000 investment and monthly deposits would turn into an incredible $1,234,338.
To show where those numbers came from, a total of $305,000 would have been deposited while the total returns made would be a massive $929,338.
Say you began this process at the age of 25 or 30, your hopes of an early retirement would be looking well and truly alive… But like I said, a higher average is definitely achievable. If you kept pace with the market's 12% annual return, your portfolio would be worth closer to $1.7 million.
Here's your chance to make a fortune
Compounding is a magical thing when it comes to turning something small into something enormous, but it doesn't work overnight. The longer you leave your investments to compound, the greater the returns will be.
It is also obvious that you will need to find ways in which to make regular deposits to make your portfolio work.
