The Mel was looking for some good stocks to purchase for his stock portfolio. He already had tons of stocks and wanted to grow it. He had bought these stocks many years ago and some had appreciated, but some wasn’t doing so well. He didn’t start with much but every paycheck, he would invest a little bit of his money into his portfolio. After a couple years, he had a good group of stocks that was doing well. Mel was not a young guy but he still felt that he could be a little risky, so, he invested in mid caps that had a lot of growing potential. But, he was already looking to change that to safer investments.
The Mel looked at companies, especially those that were out of debt. His plan was to buy stocks at a low price then hold. Although he liked day trading, he didn’t put much stock into it since he would have to monitor his stocks all day and because he was long. He had his own theme too which was metals. He liked companies that used metals in their product, so things like gold and silver jewelry and steel made up the bulk of his investment portfolio.
He was long. The Mel bought stocks right out of high school with the money he got from working at a burger joint. He did a stock purchase plan when he got to college and kept putting money into his portfolio. It wasn’t much but it would be one stock in the company a week and sometimes, when the stock was doing well, it would only be a percentage like 80% of one stock. But, he knew that as long as he kept the money in, he would have sometime for the future. The stocks would appreciate and when he retired, he could live off of his investments. Now, thats in 40 years. He looked forward to a nice retirement.
The Mel when into financial planning because he thought that that is where the money is. He had his clients, which were his friends, and he did a good job at it. He made sure that they were making good interest on their investments. As a company, he would give a full 1% of his profit back to his clients. That may not seem much, but it was more than what most companies gave if anything. He suggested putting into their own portfolio but, it was their choice, they could cash it if they needed it. His clients were appreciative and they took his advice. And he suggested to keep buying instead of selling. “Consider it as a cup of water,” is what he would say. “You put water in to the cup and when its full, you can drink it, but only when its full. If you drink from the cup, its just going to take longer to fill the cup. Now that best part is that there is a thing called compound interest where the more water you have in the cup, they more water you make.” The Mel thought for a while about what he just said, “The point is that you make more if you keep it for a long time.”
This was his secret, he would reinvest the interest and the dividend back into his portfolio. He didn’t take the money out, he just kept it right in the portfolio and reinvested it. But, The Mel used a technique called “alchemy” which he read a couple posts back. And, when he had some extra cash, he bought more stocks, not on credit cards mind you, but with the extra that he had, like bonuses and stuff. And one day, he would have enough to buy that beautiful home that he always wanted. He was thankful thought about giving one day.