Did you know the worlds most successful investor Warren Buffet made his fortune through compounding his returns?
He has been one of the richest men in the world for many years. He has been number 1 on a few occasions too,.
He has averaged around 24% per year for over four decades. 24% per year compounded for 40 years would turn $1,000 into $5,455,000.
You will have probably heard that in recent months, many of the major economies have resorted to printing money to try and tackle the global financial problems we have been having.
This undoubtedly presents a potential inflation risk. Some of the best ways to hedge against inflation include:
The main reason is the lack of value for money. It is not uncommon for them to charge many many more times more than what a discount stock broker would charge.
The main reasons I feel they don’t offer value are:
My thinking is that NOW may be a great time to invest in the stock market. There is no doubt there has been an enormous amount of doom and gloom in the financial markets. We have had major high street banks needing to be bailed out by governments, we’ve had a dramatic cut in lending to businesses and individuals and we are currently in the biggest recession since the 1930s.
