Forget gold and Bitcoin. This is how I’d invest in stocks to get rich

first_img Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Roland Head | Saturday, 18th July, 2020 | More on: ^FTSE Simply click below to discover how you can take advantage of this. Today I want to talk about how to invest in stocks. This might seem strange, given that the FTSE 100 is down by nearly 20% this year, while gold and Bitcoin have both risen by nearly 30%.However, I believe that if you want to invest and get rich, the stock market offers far bigger long-term opportunities than Bitcoin or gold. Let me explain why.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…What’s wrong with gold and Bitcoin?Bitcoin was originally invented as an alternative currency. Despite this, hardly anyone actually uses it. Most people who own Bitcoin only seem to want to trade it in the hope that the Bitcoin price will rise. I don’t see this as a sensible way to invest — it’s just gambling to me.Things are a little better with gold. Although the yellow metal will never expand or generate income, gold has been used to store wealth and make payments for thousands of years. I think that will continue. I also like gold’s portability and security — unlike Bitcoin, physical gold can’t be hacked.However, the reality is that the last time gold rose above $1,800/oz. was nine years ago. That peak was followed by a six-year slump that saw the yellow metal lose up to 45% of its value.I don’t think this is a good time to buy gold. But falling share prices mean that I do think it’s a good time to invest in stocks.Why I buy sharesWhen you own shares, you own a slice of a real business. Assuming you invest in profitable, successful companies, this means that the value of your shares is backed by profits, assets and cash dividends.Unlike Bitcoin and gold, shares do have an intrinsic value — the value of the business you part-own. Most good businesses grow over time. They add new customers or products, or increase their prices to reflect stronger demand. This is reflected in rising share prices and larger dividends.How to invest in stocksGetting started in the stock market is easier than you might think. The first thing I’d do is open a tax-free Stocks and Shares ISA. You can pay up to £20,000 a year into an ISA and all future profits and income will be free of tax.The simplest way to start buying stocks is to just put cash into a cheap tracker fund, such as a FTSE 100 index ETF. However, many indices — especially the FTSE 100 — are heavily weighted to a few sectors.Almost 30% of the FTSE 100 is made up of oil stocks, miners and banks. Technology stocks account for less than 1%. Personally, I want more exposure to sectors with good long-term growth potential, such as tech and pharmaceuticals. I’m not so keen banks.The way I approach building a stock portfolio is to choose 15-20 good quality stocks that I’d be happy to hold for at least five years. I then start to buy them gradually, investing a fixed amount of cash each month.By investing regularly, I can profit from periods when prices are low. I can also avoid any risk of putting all my cash into the market just before a crash. Dividends get reinvested whenever I buy new stocks.This is how I invest in stocks. It’s not sexy and exciting like Bitcoin, but I’m pretty certain it’s a better way to get rich. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Image source: Getty Images Enter Your Email Address See all posts by Roland Headcenter_img “This Stock Could Be Like Buying Amazon in 1997” Our 6 ‘Best Buys Now’ Shares Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Forget gold and Bitcoin. This is how I’d invest in stocks to get richlast_img

Leave a Reply

Your email address will not be published. Required fields are marked *