How to Beat the Market
The epicenter of financial activity for investors is the Stock Exchange. Be it in London (FTSE), New York (NYSE), Paris (DAC), Johannesburg (JSE), Sydney (ASX) or just about any country in the world – the stock exchange is where it all happens.
On the corner of Wall and Broad streets, the site of George Washington’s inauguration, the New York Stock Exchange is perhaps the most iconic of them all.
The famed Wall Street bull statue standing proudly on the corner is snapped by thousands of tourists sensing the energy and importance of this place.
Ironically, fewer than 24% of these people actually own any stock or invest in the stock market.
What jumps out when you visit the floor of the NYSE or the JSE (and I’ve been to both a number of times now) is how few people seem to be working at the trading posts.
This is always a bit of a let down for me.
I keep hoping to see crazy traders running around with tickets in their hands like we see in the movies Wall Street or Trading Places.
But those days are long gone, replaced with electronic trading from all over the world, and that’s a good thing for individual investors like you and me.
Investing is more available, more accessible, more transparent, and cheaper than ever before.
No need to ring up your broker anymore to buy a “lot” (100 shares) of a stock. At a big fee too!
That’s because we have access to low-cost investing like never before. We also have access to invest in markets around the world from wherever we happen to be.
Sitting on the beach in Mozambique after a wonderful scuba dive – a quick buy or sell via my online broker and back to living life.
That’s pretty awesome – to be able to buy hundreds or thousands of a stock, to become a part-owner (even just a fraction) of great businesses for less than a six-pack of something nicely chilled.
One way (the best, in my mind) to take advantage of it is to set up an investing plan via an online broker in an index tracking fund or Exchange Traded Fund (ETF) and commit to it for the long term.
Read this article on the Difference between ETF’s and Unit Trust Type Index Tracker Funds
Read this article on How to Set up your core index tracker investment strategy
Read this article on How to Select your Global World Index Tracker Fund
Through the highs and the lows. Get a plan and stick with it.
Not tickers.
Not charts.
Not trading.
Not “great tips” from the hairdresser
Great Businesses + Regular Investing + Long term.
That’s the Wealth Chef Recipe.
So when it comes to helping others put their money to work, I do what I always do – I turn to The Wealth Chef Expand Your Dough Recipe in The Wealth Chef Book.
I stick to the tried-and-true wealthy approach to regular and consistent investing, thinking of my stocks as businesses with true assets, competitive advantages, and earnings power.
I invest with the intention of owning for years – decades, even.
And that’s the huge difference between Wealth Chef investing and the kind of activity conducted by so many traders, whether they are on the floor of the NYSE, FTSE, ASX or JSE; sitting in a hedge fund office suite; trying to catch the spread on the forex market; or excessively trading a client’s account in Any Town, WORLD.
Wealth Chefs are business-oriented, long-term investors who focus on getting their money working for them - for the long term - over and over and over again. We are NOT interested in a quick buck; we want real sustainable wealth.
We know the value of being owners of great companies and sharing in the value.
It’s worked well for me, and it can work for you, too.
P.S And this includes understanding the difference between being Wealthy v being Rich.
Wealth Chefs want both and understand being wealthy is the route to living a rich life on our terms.
