At MindShift.money, we’re an online community founded on the principle that people have been brainwashed by money myths and limiting beliefs about money, prosperity and Freedom.
That’s why we set out to create a “new normal.” A new way of thinking about money where Financial Freedom is normal.
When it comes to Making Your Money Work For You, one of our bedrock investment principles is this…
We Don’t Trade the Market. We Don’t Try to Beat the Market.
We don’t gamble.
We understand the odds are stacked against even the “investment professionals.” Even the professionals, using sophisticated computer trading algorithms, don’t consistently beat the market.
So what hope could there possibly be for the ordinary person?
Let’s take a step back and consider the “trauma” associated with the Trump election story and its effect on the stock market over a 24-hour period.
Do you think that fewer people bought bread or beer on Wednesday or Thursday because of the election results?
Do you think people decided not to drive their cars or use electricity because of the election results?
Of course not!
No matter what happens in the political arena, the economy or the stock market… people still need to consume everyday goods and services. Life goes on.
People continue to order books from Amazon, subscribe to Netflix, buy toothpaste, go to Starbucks and buy Big Macs.
These are precisely the kind of companies you want to invest in.
The legendary Warren Buffett has long been an advocate for targeting companies that are:
- Consumer monopolies, selling products where there’s no effective competitor. Companies with a GLOBAL brand;
- Companies in businesses that are easy to understand;
- Companies that can adjust their prices upward in response to inflation; and
- Companies that have a history of increasing both earnings AND DIVIDENDS, year after year.
It’s all about Investing for Cash Flow. Buying shares in stable companies that provide you with a predictable, passive income stream, year after year.
That’s the secret to your Personal Financial Freedom.
Not trading, not buying low and selling high, not trying to “beat” anything.
The secret is to build an income stream that replaces the money you earn from your job or business. So you’ll no longer need to exchange your time for money.
When you target companies with the longest history of dividend growth, you can be confident that they are high-quality companies with the potential to withstand any kind of short-term market turmoil, and to deliver strong returns over time.
The S&P 500 Dividend Aristocrats Index is an excellent example of a group of 50 companies that have increased dividend payments every year for at least 25 consecutive years.
It’s no surprise that many of these companies are household names.
Companies such as AT&T, Clorox, Colgate-Palmolive, 3M, Johnson & Johnson, Wal-Mart and McDonald’s.
You don’t need to hire a money manager to tell you what to do with your money.
You don’t need to hear their excuses when their quarterly reports reveal that once again … your portfolio has declined in value.
Meanwhile you’re paying them commissions and fees as high as 1.5% or 2% per year!
The stock market will always be unpredictable, subject to recurring cycles of bull and bear.
When you ignore all the “noise” from the “talking heads”, pundits and self-described experts, you will be well on the way toward building a solid financial framework, with a diversified portfolio of cash-flow generating investments (including, but not limited to stock investments) that will buy your permanent Financial Freedom.
Dr. Tony is the co-founder of MindShift.money and the best-selling author of three books on personal and business finances. Having achieved Financial Freedom at 27, Dr. Tony believes that through Financially Fit Bootcamp and Cash Flow Cure everyone can get there. He has made it his life’s mission to help others live a life where their money works for them—not the other way around.