The Australian stockmarket, gauged by the S&P/ASX200 Index (INDEXASX:XJO), is up over 76% since the depths the of GFC. Sure, I've carefully chosen that timeframe to emphasise my next point.
But, did you know this:
Since 1900, the Australian stock market has returned an average of 12% per annum!
That turns $1 in January 1900, with profits reinvested, into over $395,000!
That's despite two world wars, the great depression, a dotcom boom and bust, the GFC and world-changing inventions such as the internet, smart phones, subprime mortgages and, believe it or not, hair in a can.
So, what's stopping you from investing today?
A potential correction?
Market crash?
Supercomputers?
Who really cares what it is, everyone will lose money in the stock market from time to time.
However by following some simple, yet successful, investing tricks you too can dramatically improve your chances of matching, or beating, the market.
$10,000 invested now for 30 years, at a return of 12%pa, with no additional contributions grows to $299,599.
Add $100 per week to your portfolio and it grows into $1.457 million.
Source: Moneysmart.gov.au
4 stocks to get you there…
If you're contemplating getting in on the action, here are four stocks I'd buy today if I were starting again.
Note: As you can see in my disclosure below, I'm not just waffling about random stocks on the ASX, I actually have a financial interest in all of them!
1. Rio Tinto Limited (ASX: RIO) is Australia's largest iron ore miner. With the recent price falls in iron ore, that hasn't exactly helped it to grow revenues. But it did it anyway! Rio has excellent costs of production across a number of commodities and has some projects which will last more than 30 years!
2. Cash Converters International Ltd (ASX: CCV) is Australia's premier second-hand goods dealer and provider of payday loans. What you may not know however is Cashies has a huge presence in the United Kingdom and is expanding into South America and New Zealand through various joint ventures. It pays a great dividend too!
3. Coca-Cola Amatil Ltd (ASX: CCL) distributes products which many/every Australian knows and trusts. CCA has the exclusive rights to distribute The Coca-Cola Company's range of products to Australia, Indonesia, New Zealand and three other neighbouring countries. Its shares trade cheap and pay a handy dividend.
4. ADMEDUS FPO (ASX: AHZ) is a small-cap diversified healthcare company with operations ranging from medical devices to immunotherapies right through to its flagship tissue regeneration technology, Cardiocel. Today the company announced first shipments of Cardiocel from its new manufacturing facility in Western Australia to the USA.
Our #1 ASX dividend stock – Yours free!
I own stocks, or warrants, in each of these companies. In fact, just three days ago, I bought more Admedus shares because I believe it holds exceptional potential, albeit with a moderate, or high level of risk.
