/biz/ - Business & Finance

OP LISTEN UP

You need to learn the concept of value investing as made famous by Warren buffet and Benjamin graham. You should invest that money a few good stocks that are priced low with great dividend history.

For example. $STON is the 2nd largest funeral services company in America with an annual dividend payout of almost 14%. So let's say you invest the entire 100k. You'll get roughly 3,500 paid in dividends 4 times a year and you can reinvest and compound the interest. Eventually 3500 turns into 4000, which turns into 4600, which turns into 5200 and so on until it snowballs. That's not including the share price going up over a long period of time.

If you sell the stock after 1 year and 1 day, your profits are taxed at a mere 15%. You could make more money in your boxers if you analyze and pick the correct stock using this method.

Pic related. $9.02 was the lowest stock price recorded at the height of the great recession. This stock is now valued at $9.29 cents. With this method, if the stock goes down, it's only going to go down a few pennies which minimizes risk whereas if you invest in penny stocks your likely to lose your shirtm