
Three Principles for Wealthy Investing
Three Principles for Wealthy Investing
Over the past 5 years, the top blue chips stocks have continued to rise. Which one of the 30 Dow stocks makes the best long-term investment? In just a moment, I'll reveal my top three picks. You will want to own my top three picks in both your trading account and your retirement account.
Before I reveal my picks, here is a brief tutorial. At the Wealthy Investor program I teach three important principles. They are:
1) We Don't Marry Stocks, We Only Date Them
In the 21st century, our world is changing at a very fast pace. The company that is the dominant player in a sector today can be a laggard tomorrow. Therefore, we only date/invest in a company that is making money (growing revenue) and maintaining leadership in its sector of the marketplace.
2) Invest In Companies That Grow Revenue
Stock prices rise based on the company's quarterly and annual revenue. Don't buy the stock if you don't understand the story. In other words, as an investor if you don't understand how a company earns money, you don't know the story.
3) Look Toward the Future
Will the company you are investing in be around and relevant in the next five years. No one knows the future but just asking this question before you purchase shares in a company will keep you ahead of the uneducated self-directed investor.
These three principles keep you focused on strong revenue producing companies and future profits.
So without further delay, here are the Tyrone Jackson Wealthy Investor top three Dow stocks you should own. Their stories are easy to understand and they are highly likely to be around over the next five tears. They are:
*Disney (DIS)
Disney 5 Year Chart
Disney continues to earn billions from its theme park business and merchandising along with ad sales from its TV networks which include ABC and ESPN.
Disney's annual revenue has increased from $38 billion in 2010 to just over $48 billion in 2014. And their recent acquisition of Lucasfilm and the Star Wars brand will add billions in profits to the company's top line revenue over the next five years.
*Home Depot (HD)
Home Depot 5 Year Chart
Home Depot's story is simple. Home owner and independent contractors will continue to renovate and improve homes as our economy continues to recover.
Home Depot's annual revenue has grown from $70 billion in 2010 to over $83 billion in 2014.
My final pick? Drum roll please.
*Nike (NKE)
Nike 5 Year Chart
Over the past ten years Nike has been a steady Eddie solid long-term date. As they continue to expand, their sneaker and apparel will continue to grow worldwide.
In May 2013 Nike's annual revenue was $25 billion and in 2015 their annual revenue was $30 billion. This rise in revenue has caused the stock price to double in less than 5 years.
In my Wealthy Investor program we call these three stocks Superior Dow Stocks due to their tendency to rise over time based on consistent annual revenue growth. However, if their revenue were to decline, then the "date" would end.
Be a smart investor. No date/investment lasts forever. Understand that as our world changes, so will the companies and stocks we choose to invest in. This is what The Wealthy Investor Program is all about.
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* DISCLAIMER: Stocks and options trading involves risk and is not suitable for every investor. The stocks and options prices vary and, as a result, clients may lose or gain from their original investment. Stock illustrations posted on TheWealthlyInvestor.net web site are for illustration purposes only. Your personal results as a trader/investor may vary from the WI students listed above.