Table of Contents
Chapter 1: How to grow wealthy with the minimum of effort.
The real secret of growing great wealth is the power of compound interest and that is why just a small difference in the returns you are able to achieve when you invest your hard-earned savings will in the end make a dramatic difference to whether you end your days disgustingly wealthy or in genteel poverty.
Chapter 2: “I want in now”…the mindset that has enslaved the world.
Do you, like most people you know, want to be a slave for the rest of your life? Or are you prepared to expend a minimum amount of effort to master the financial system of the modern world?
Chapter 3: Big is not just better; it’s vital if you really want to grow your wealth.
The person intending to become a Ten Minute Millionaire makes a different choice. He elects not to marry his sweetheart until he has saved at least a million. He does this by every month saving the same amount as our first young man is paying the bank in bond instalments and investing it in top-performing shares.
Chapter 4: Understanding compound interest and why time is vital.
To understand why a rate of compounding is so vital to the exercise of growing your personal wealth, you need to get your mind around what actually happens when money is subject to compound interest.
Chapter 5: It’s not how much you earn but what you choose to do with your earnings that determines who ends up rich.
Mr Average Man conventionally he uses unit trusts, a pension fund or an insurance policy as his principal vehicle of saving and, sadly, none of these normally deliver high rates of growth.
Chapter 6: So how do you identify a Blue Chip Share?
I define a Blue Chip as a share of a company that, among a series of qualities, has paid constantly-rising dividends over at least a decade.
Chapter 7: How to pick market-beating shares.
Create a list of shares that are traded daily in volumes in excess of 1-million and rank in descending order of dividend growth over the past decade. From this selection choose those shares that have achieved the highest price growth rate over the past five years.
Chapter 8: How to build a market-beating share portfolio!
Capital-growth is not everything. For those who rely upon dividend income to fund their retirement years, it is clearly much more important to see dividends rising steadily than to achieve capital growth.
Chapter 9: Time to understand how to time the market.
Assembling a portfolio takes time and patience while you wait for your chosen share to come into your pre-determined price range; that is the price which you, the investor, believes offers fair value.
Chapter 10: You should always try to balance a portfolio.
The only remaining tasks are to ensure that there is not too much sector domination: i.e. to ensure that there is as even a spread as possible over the various share market sectors.
Chapter 11: A simple way to time your buying and selling.
How to draw a trend line drawn that intersects the greatest possible number of graph turning points and thus provide yourself with a simple Overbought/Oversold line that is the only tool that the Super Simple Long Term Investor needs in order to decide when he should be buying and when he should be selling.
Chapter 12: The richest person on the planet.
If you applied the same compounding effect to our Super Simple Portfolio at 57.6% compound it would have grown to an unimaginable R652-trillion making you by far the richest person on this planet.
Chapter 13: Tailoring an investment plan to your personal needs.
Some categories of investors require high degrees of investment security in return for which they are prepared to accept lower than average market returns while, at the other end of the spectrum there are others whose overwhelming priority is to grow their wealth.
Chapter 14: What yield do international investors expect from a share?
Although there exists a significant yield disparity between the world’s bond markets, there is little of no difference between the pricing of shares no-matter where the principal operations of the underlying companies are located.
Chapter 15: So how does one effectively measure the risk of an investment?
If an investor were obliged for any reason to sell a share without being able to pick the optimum time to do so, the chances of his losing money on his original investment would be far greater in the case of a share that fluctuates excessively about its price mean as compared with one that seldom fluctuates.
Chapter 16: Tailoring a portfolio to your personal risk profile.
There is never a one-size-fits-all share portfolio. We each have our own individual investment needs and ability to cope with risk.
Chapter 17: Understanding the need for diversification and the role of cyclic profit companies.
Why it is wise to avoid cyclic businesses, those like the mineral extractors whose fortunes are perpetually held to ransom by factors that are largely beyond their control such as the value of your currency and the health or otherwise of the world economy.
Chapter 18: Recognising that different people have different investment needs: capital growth versus income growth.
Are you seeking capital growth or are you seeking income growth? Though these might initially appear to be interdependent factors, in reality this is not always so.
Chapter 19: How to practically construct a portfolio.
One might well start off with a perfect shopping list and then inevitably find that it is quite the wrong point in the annual price cycles of many of the desired shares to be able to buy immediately. And so you might play a waiting game.
Chapter 20: Technical Analysis; a simple overview.
In selecting and developing the five analytical indicators for the ShareFinder fixed window analysis we examined scores of different technical analysis tools using computer optimisation in order to determine their accuracy. We then refined and developed the five best approaches in order to develop an analytical system in which buy and sell signals are only issued when all five differently-derived systems agree.
Chapter 21: In Summary.
Like everything else in life, a beginning is just that; the first footsteps in a lifetime of honing your newly-acquired skills. I can, however, guarantee that it will be a fascinating journey for you will not only be materially enriched but, as your skills grow, you will gain an unique insight into the workings of the world’s markets and, as a consequence, the forces that shape world events.