Here’s how I reckon £20k could make me a million with shares

first_img Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. See all posts by Kevin Godbold I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. It might seem far-fetched, but it’s possible to turn a relatively modest sum like £20k into a share portfolio worth £1m.I know it’s possible because investors like Mark Minervini, Lord John Lee, Warren Buffett and many others have all invested their way from a few thousand to millions, and even billions in some cases. And they’ve done it well within the span of their working lifetimes.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Aiming to make a million with sharesThe old adage is true in the stock market that ‘it takes money to make money’. But it doesn’t take a lot of it. However, I reckon it does take a few things to get great performance from investments.Perhaps the most important factor is hard work. If I think of the process of investing as a hobby or a passive activity, I will be unlikely to achieve outperformance with my investments.However, passive investing is a great way to approach shares if my life’s too busy to put much time into investing activities. Indeed, decent long-term returns can result from buying tracker funds, managed funds and investment trusts. Or, for example, by pursuing a strategy of dividend investing by targeting high-yielding big-caps.And the process of compounding will help my investments grow over time, even with a laid-back attitude to investments, as I’ve described.But to really get my portfolio motoring I need to target higher returns. Indeed, compounding accelerates if the annualised average return increases. For example, compounding an annualised 7% return a year will produce a decent long-term outcome. But compounding, say, 20% a year or more will produce a superior result. And the overall balance of my account will grow much faster.Picking and refining a strategyMany investing strategies can be successful. But my preferred method for achieving higher annualised returns is to target businesses with growth potential. And my portfolio then needs the underlying operations to achieve that potential. Or the stock could factor the potential into the share price – which usually means the stock goes up.And that’s where the hard work comes in. Firstly, it’s important to learn all about how to analyse stocks and their underlying businesses. Then to finetune an investment strategy that helps me pick the best opportunities at the right time. Often, that process involves looking at both qualitative and quantitative factors.But even then, working out when to buy a share is only half the battle. It’s just as important to know when to sell. Maybe I’d sell to take some profits. Or to cut a loss. Perhaps I’d sell because the ‘story’ has changed. Or to rebalance my portfolio. Perhaps I’d sell because the business has become over-valued. Whatever the reason, it’s important for me to develop and refine a set of rules and a strategy for selling stocks.Opportunities arrive in the stock market nearly every day it’s open. And if I work hard at finding them and executing my strategy, I’m certain that £20k could make me a million over time. Image source: Getty Images Simply click below to discover how you can take advantage of this. Kevin Godbold | Sunday, 13th December, 2020 Our 6 ‘Best Buys Now’ Shares Kevin Godbold has no position in any share mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. “This Stock Could Be Like Buying Amazon in 1997” Enter Your Email Address Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. For example, I’d look closely at this opportunity. Here’s how I reckon £20k could make me a million with shareslast_img

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