I gave a presentation last night for several University of Houston MBA students about Financial Statement Analysis and career opportunities in the investing industry.
We talked quite a bit about valuation methods, such as how to evaluate earnings multiples and how to construct a discounted cash flow model (with
$RKLB and
$DUOL being specific examples).
I also encouraged them to think of investing as a marathon rather than a sprint. Compounding wealth takes time and you'll get better in every year of the journey.
Some years like 2025 will be very good. Others like 2022 will be very challenging.
But stay the course. Your future self will thank you if you're diligently adding new money and are methodically improving your process.
To demonstrate this, I even shared my professional investment newsletter performance results.
The newsletters I have run - Motley Fool Explorer and then 7investing - both followed a very simple process: Invest in one new stock every single month. I've essentially done this in each month of the past decade. (In last night's example, we assumed adding a fixed amount of $1,000 per month.)
Even this simple strategy has done a great job of compounding capital over time: An average return of 64% for the Explorer picks and 96% for the 7investing ones.
And just imagine if we'd let the Explorer picks ride and to participate in this fantastic recent bull market?
Or if you'd taken larger stakes in your favorite and highest-conviction companies, where you put $3k or $5k upfront into
$NVDA or
$PLTR?
Or if you'd added more frequently to your biggest winners?
The stock market is here to empower your financial future. It will open doors for you to buy a new home, to take some fun vacations, to make a career change, or to retire early.
Take advantage of it being available to you!
7investing.com