Chris Lau - Seeking Alpha

Thursday, January 20, 2011

Get Rich... Slowly

Report on Business is an excellent source for news on the financial markets. Yet, one comment that stood out from one of its readers is worth re-posting. 

Is obtaining wealth impossible? Is it difficult?

"Certainly the rich get richer, and certainly the knowledgeable get richer, need not be a genius to invest in the market and make some reasonable returns .

For the depths of the late 2008 "correction/recession/whatever your favourite term could have purchase stocks in any of the big canadian banks. I'll take TD as an example because thats the one I bought. I bought at $43...I believe it went lower. It's now at over $75.....

The dividend is around 3% now...if you bought at $42 you would be making over 5% dividend on your cost...and that will go up from now. Big risk/ Nope..I think TD or BMo or CIBC or RBC will weather most matter what. I think that history has shown that the canadian banks are a good investment and safe...not have to buy low..but safer than most.

Am I a genius? HARDLY.. am I making 100% on my investments yearly and wearing fancy clothes..HARDLY..but I made a good percentage on the stock and I am making a good dividend and I don't plant to sell anytime soon because I think the dividend will go up and I can safely make 6 or 7 or 8 % every year off that stock for the dividend alone.

Hard to do?? HARDLY You can do it too...and you don't need big dollars to get started.....but starting is the key...."