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Pay Yourself First
[The Richest Man in Babylon] |
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The"The Richest Man in
Babylon" concept has been revealed in a book, written by George S. Clason,
which is readily available on the internet. This concept begins the investment
journey for those who want to exercise prudence and take on the personal responsibility
to ensure that one is postured to achieve fruitful investment goals, by establishing
a plan that can actualize these investment goals. The concept consists of
paying yourself first [for investment utilization], before any other bills are paid
or recreational items/activities purchased; thus, ensuring that one always has money
to invest upfront, the first priority. |
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By paying yourself, there will always be money available to invest and save until retirement; unlike, others who tend to wait until all of the expenses
have been paid and come to find out there is no money to invest. That is why
this simple concept, easier said then done, has become the cornerstone for
all those who hope to reserve a nest egg for retirement. Now, more than ever,
because of information access and technology, and the objective, tangible, measurable,
and systematic process invented by the SpireStock's founder, one can instantly enhance
that investment journey. Unprecedented in
approach and methodology, all that is required from the individual investor
is a time frame of at least seven years to invest (SpireStocks suggests this time
frame to enable the investor to utilize direct stock investing for the equity asset
allocated portfolio, which typically accounts for 70-90% of an individual investor,
who is investing for the long term). See the understanding
the importance of matching time frame with investing goals. |
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Combating Inflation |
The American Heritage Dictionary defines inflation as:
A persistent increase in the level of consumer prices or a persistent decline in
the purchasing power of money caused by an increase in available currency and credit
beyond the proportion of available goods and services.
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The implication of inflation [ increase in prices and/or decline in the purchasing
power of money] is that one must NOT save money (primarily in savings
account for investment purposes) or have their money tied up in investment instruments
that are equal to or less than the inflation rate; otherwise, they are actually
LOSING money. Yes, if you have been using a savings account as
a means to "investing" your money, you have actually lost money, whenever the savings
rate is less than the inflationary rate.
When combined with the prudent investment principles of understanding the importance
of matching time with the correct investment instrument and direct stock investing,
the conclusion is actually quite simple.
The simplicity of the conclusion is that if the investor has any chance of not losing
money or transcending the equivalent of treading water, they must ensure that they
are investing in an instrument that, year in and year out, always has the consistent
propensity to overcome the devastating inflation concept.
Thus, if an individual is investing for the long term (defined on SpireStocks as
at least seven years) the best means to hedge inflation is by direct stock investing,
which is most apt to ensure that inflation does not eat away at your plans to be
financially sound, toward your retirement years. |
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The conclusion is that if an investor ever wants to posture themselves against the
drag of inflation, they really DON'T have a choice, they must invest
directly in stocks for the long term.
SpireStocks provides you that opportunity and turn key approach to control and manage
your own equity portfolio via direct stock investing including automated triggers
to sell or buy more stocks of a current holding. |
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Matching Time Frame with Correct Instrument |
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In the Long Term, Equities Outperform Other
Investment Alternatives/Methods
Understanding the Importance of Matching the Time Frame with the Correct Investment
Instrument
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The time frame concept applied toward investing is paramount. Ask any financial
expert, and they will proclaim, along with paying yourself first, the importance
of investing early on in one's life.
SpireStocks strives for at least seven years, since, by obtaining an annualized
return of ten to eleven percent, over that seven year period, one can double their
money.
The SpireStock's annualized return, utilizing the unparalelled
AITP™ process, invented by the founder of SpireStocks, enables the individual
investor direct insight into not only the suggested transactions, but also includes
the necessary triggers to buy more stocks AND sell stocks. |
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By providing the necessary quantity of stocks to buy, via an objective, systematic
process, SpireStocks empowers the individual investor to actualize the ability to
manage one's own investment equity portfolio, while maintaining individualized control
of the suggested transactions via a separate, independent, on-line brokerage account;
thus, eliminating the need for other management costs that erode the percent gain
returns.
Moreover, the turn key approach and SpireStock's methodology , unprecedented to
date, only requires the amount of money the individual investor desires to invest.
After providing this one input, SpireStocks objectively and systematically suggests
which stocks to buy or sell in specific quantity, while automatically providing
the necessary triggers to buy and sell shares to realize the individual investment
goals. See performance history and facts,
as compared to the market indices, to further understand the success of SpireStocks. |
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Compounding Returns |
This is a crucial concept in understanding the role time plays
in achieving your financial goals. In addition, the percent annualized gain
is absolutely critical in conjunction with the investing time period. In attempt
to illustrate this point, take the following scenario:
If you were to invest a penny and you received compounded interest of 100% every
DAY, how long would it take you to become a millionaire? On the
surface, it seems like it would take a long time, but let's see if we can understand
this compounding concept.
The formula is as follows: initial investment amount * (1+interest in decimal)^(time
period)
Thus, we have a penny, 100% gain every day, i.e. your money doubles every day.
1 cent * (1+1)^number days. To obtain dollars you would divide
cents by 100. Here is the chart
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Days
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1
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2
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7
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8
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17
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26
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27
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Dollars
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.02
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.04
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1.28
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2.56 |
1310.72 |
671088.64
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1,342,177.28
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Asset Allocation |
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Asset allocation, allocates your assets across numerous investment instruments:
real estate, bonds, mutual funds, direct stocks, precious metals, etc.
An investor should definitely have their investment portfolio both diversified and
asset allocated, but commensurate with the time period available before
distribution, i.e. the time frame/risk has to be assessed along with the two concepts
of diversification and asset allocation.
SpireStock suggests that the individual investor, who is investing for the long
term (at least seven years), should have 70-90%
of their investment portfolio in direct stock investing. |
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Direct Stock Investing |
Successful Investing, written by the Babson-United Investment Advisors Staff
On page 27, the book's fourth edition, "Successful Investing", written by the staff
of Babson-United Investment Advisors, Inc., states under the title, "Why You Can't
Ignore Stocks", "for the investment in common stocks is about the only way most
savers can hope to offset inflation."
On the following page it continues under the title, "Stock Values Go Up and Up",
"Another thing folks tend to overlook is that the intrinsic values behind good stocks
go up along with dividends. As the economy of this country grows, so do the
sales of earnings of our leading corporations." |
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By combining fundamental business and investment principles and applying
AITP™, SpireStocks has surpassed all the major market indices with phenomenal
results. Please click on the facts about
SpireStock's performance. After review,
Subscribe to SpireStocks, and, follow the step by step individual investor
guidance to and track your performance with the MySpireStocks functionality.
We have not come across another investment company, firm, or fund that guides you
in determining how much of each stock to buy, based on the amount you are interested
in investing in equities and based on an objective, tangible, and systematic means.
In addition, SpireStocks suggests when to buy more shares of a stock and when to
sell shares of a particular stock to ensure that the individual investor is postured
to continue to achieve the phenomenal results, already demonstrated by
SpireStocks performance in comparison to the major market indices. |
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SpireStocks is the result of identifying the good stocks, by utilizing a process
called AITP™.
Subscribe now to
SpireStocks.com to take command and control of your financial future. |
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Diversification |
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The diversification concept attempts to avoid having the majority of your portfolio
invested in one/few investment equities/sectors.
The rationale is to preclude having your entire portfolio taking a severe set-back
due to the decline in that one/few areas, i.e. all your eggs in one basket.
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The greater the diversification (assets spread across numerous instruments and particular
equities) the less likely your portfolio will be postured to take advantage of those
equities/sectors that have a great increase/rise in value. Given that, if your equities
were all in the one sector that declined then your portfolio would be too risky;
thus, there is balance, but to what degree is prudent and what is too cautious.
Therefore, diversification can not be assessed independent of risk, specifically
the time frame for which the individual investor has until they want access to the
money being invested.
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This is a crucial concept as well. A portfolio can be "perfectly" diversified, but
if the return is in the single digits and the individual investor has 20 years to
retirement, they are not being prudent, since the return on the portfolio will not
be commensurate with the potential of the time line available. Hence, a portfolio
can be too diversified, as evidenced by numerous mutual funds, that year in and
year out have single digit/negative returns.
Thus, like most situations, there is a give and take, the more diversification the
less risk, but on the other side of the coin, the more diversification, the less
apt the portfolio will be postured to take great advantage of significant rises
with particular equities/sectors. |
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The evidence is clear, the best instrument for the long term investor is direct
stock investing. There hasn't been one mutual fund that has outperformed direct
stock investing in a 15-20 year time period, which is the reason SpireStocks suggests
direct stock investing and has developed the turn key approach for the individual
investor who has at least seven years for investment purposes.
The number of SpireStocks tends to provide the necessary diversification commensurate
with the potential for a greater return, as demonstrated by the comparison of SpireStocks performance to the major market indices. |
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To better understand this concept, take a mutual fund and its top ten holdings and
compare the entire mutual funds return to the top ten stock holdings separately
and observe the substantial difference in returns/NAV between the mutual fund and
the top ten equities during a 52 week time period.
At this time, several investors believe the concept of diversification is overrated
and far too many investors worry about being too diversified versus the potential
for return. |
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At SpireStocks, for the individual investor who is investing for the long term (defined
as at least 7 years to retire), direct stock investing should comprise from 70-90%
of the investment portfolio, specifically owning individual stocks.
Since there is no other investment vehicle that can beat direct stock investing
across the board for the long term, this is why SpireStocks suggests direct stock
investing and provides you the actual stocks and quantity to include when to buy
and sell. Subscribe now for access
to the stocks to include your own means to direct and control your stock portfolio. |
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Dollar Cost Averaging |
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Although, SpireStocks encourages all to invest and understand
dollar cost averaging, SpireStocks implements the concept of dollar cost
averaging, when the transactions are exercised, not just with a fixed amount of
monetary allocation within a pre-designated investing period. |
| Effectiveness: Buy Low & Sell High
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SpireStock's is keenly aware of this concept; thus, provides an unprecedented means
of objectively and systematically having automated triggers, that suggest when to
buy more stock shares, when the price dips, and having an automated trigger when
to sell.
This approach and methodology does not seek to try to time the market or to speculate
when the stock, at any given time, will be at its peak. Time and time again, history
has indicated that it is extremely difficult to perfectly time the market. |
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Although most profess the buy and hold mantra, for the long term investor, there
have been numerous examples of the company of the past that has had stellar results
and perhaps even sustained for a period of time, but that have lost market share,
since peak performance of the past; therefore, buying and holding is far from optimal,
on the contrary.
By buying more shares when the price temporarily dips (SpireStocks has limits to
how far the stock can dip), and selling at an appreciable gain, in the long term,
will always outperform the buy and hold mantra (presumes that the stock doesn't
dive down and stay down forever; a fair presumption with SpireStocks.
Instead, SpireStock's strives for a 19% return, which results in doubling your investment
every four years, with a lofty goal of 26%, which doubles one's money every three
years. This goal has been achieved by observing and comparing the
SpireStock performance to the major market indices.
Those that held on to the stock may have held on too long; thus, not taking advantage
of when the stock was performing at or near its peak. At SpireStock's, there is
a proven and systematic way of buying more shares when the stock dips temporarily
and selling at an extremely noteworthy gain. |
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Subscribe now and
take advantage of SpireStock's approach and methodology of realizing this prudent
investment concept. |
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Annualized Return |
This is a crucial concept in trying to understand the effect that
annualized return has over time. One can have a great return one year and
a devastating loss the next; thus, the geometric mean will provide the annualized
return, which is also why, annualized return must be utilized in comparing one stock
to another. In attempt to illustrate this point, take the following scenarios:
- One individual investor had a percent gain of 55% one year and a 5% gain the
next.
- Another investor had returns of 34% and 26% during the same year cycle. Who had
the better return?
The answer is the second person with an annualized gain (goemetric mean) of 29.94%
compared to the first investor with a 27.57% return.
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The point is further developed by changing the scenario above; wherein,
- The first investor had the 55% gain over a two year period and then 5% the next
year compared to the
- Second investor who had the 36% gain over the same two year period and 26% gain
the next year.
To annualize the return you must add one to the ratio and raise the ratio to the
power of (365.25)/(#of days of the time period) and then subtracting the entire
entity by 1.
This is a significant difference from the first example and illustrates the importance
of comparing returns over different periods by first calculating the annualized
returns before comparison.
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Therefore, after understanding stock history and performance, one can apply
prudent investment principles and the SpireStock's approach and methodology
to build a stock portfolio that outperforms the major market indices. Comparing
the major market indices, to the SpireStocks performance, validates this claim.
Subscribe now and start that investment
journey to ensure that you are postured to combat inflation. |
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