Edward Flores's Avatar
Edward Flores
published in Blogs
Feb 05, 2021
Don't Spend Your Bonus...Invest It! Here's How

Don't Spend Your Bonus...Invest It! Here's How

When I was working as an Investment Counselor at a $40 billion money management firm, my job was to manage a book of around $150 million. It was difficult work at times - building relationships with 120 clients and making sure that their investment portfolio was working towards their long-term goals was the main task, but we also had to make sure our clients understood what was happening in the capital markets at all times. With the 24-hour news cycle, it's easy in the world today to allow fear and emotion to influence the investment decision making process, and my job was to keep emotion out. Any time there were volatile markets - which is often - it meant long hours and lots of hand-holding. 

But like many hard workers out there, there's a reward for the effort. That reward came in the form of quarterly bonuses, depending on how well you performed.

Over the years I developed a system for how to deal with bonuses. When I received them, the very first thing I would do is pay down any interest-bearing debt I had. Period. I'd zero out my credit accounts faster than Usain Bolt in a track race.

Then, I'd allow myself one modest purchase - a plane ticket, a nice new kitchen appliance, maybe some new running shoes. Whatever it was, it could only be one item. That was a hard and fast rule. No exceptions!

Then, with whatever was left over, I would invest it with a long-term approach in mind. I set it in my mind that I would use my bonus money to buy stocks I really liked, companies I believed in, companies I thought would continue to do well far into the future. But here's the thing - I wouldn't invest in those companies with the mindset that I wanted to make a quick buck. I was buying stocks with the vision that 20, even 30 years from now I'd still have shares of the company, and that over the years I was constantly purchasing shares. It was my homage to Warren Buffet, who would surely back such a strategy (and has before).

 

 

So, over the course of the six years I worked there, every quarter I'd go through the same routine. At the beginning of my tenure, I chose 3 stocks I liked. They were: Costco (ticker: COST), Visa (ticker: V), and Salesforce (ticker: CRM). To this day, I own those three stocks in my portfolio (amongst other holdings), and I've owned them now for the better part of 12 years.

Here's been my return on each of them:

Costco: +268%

Visa: a little over +450%

Salesforce: +2,000%

You read that last number right. I've made a 2,000% gain on my Salesforce shares. I made a long-term commitment to a strategy and I've stuck with it, and plan to continue sticking with it as long as I'm a fan of those three companies. I still very much am today.

Investing your bonus can be a lot of fun, especially when you see your bonus turning itself into bonus after bonus after bonus with gains in the stock market. You worked for your bonus, let it also work for you!

Now that you're ready to invest your bonus or any extra cash you have, you need ideas. You can generate fresh ideas right here on Tickeron.com, by using the DivScore feature or engaging with the state of the art Artificial Intelligence you'll find on this website. Explore ideas, pick one that you like, then see it through.    

Related Tickers: COST
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 07, 2021
4 Tricks Hedge Funds Use to Get Ahead

4 Tricks Hedge Funds Use to Get Ahead

If the stock market were Major League Baseball, hedge funds and institutional investors would be the pros on championship teams while everyday self-directed investors (SDIs) are the benchwarmers in the minors.It’s how they get ahead, and it’s why 90% of SDIs lose money trying to play (invest and trade) in the major leagues. The 4 tricks we discuss below are rooted in one common theme: they all use Artificial Intelligence and algorithms to generate data and ideas.
John Jacques's Avatar
John Jacques
published in Blogs
Mar 22, 2018
A.I. Stock Market Predictions: Head & Shoulders

A.I. Stock Market Predictions: Head & Shoulders

Statistics for the Head-and-Shoulders Bottom Pattern The days where only hedge funds used algorithms to trade stocks are officially over. Now retail investors can use Artificial Intelligence (A.I.  Here’s an example of the algorithm in action: Late last year, Tickeron’s A.I.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Jul 10, 2020
3 Stocks to Buy if Coronavirus Second Wave Hits

3 Stocks to Buy if Coronavirus Second Wave Hits

By analyzing market trends from the first wave, you can predict behavior for the second. Technology stocks have performed at historic levels this year, but the market is severely overbought.To compensate for that, look at performance during Q1 and Q2, the height of global Covid shutdowns.
Edward Flores's Avatar
Edward Flores
published in Blogs
Feb 06, 2021
How to Become the Millionaire Next Door

How to Become the Millionaire Next Door

The Golden Gate Bridge is always a fixture of these walks too, one of man's most beautiful creations.  As we were walking, at one point she turned to me and said, "Man, I'll never have a million dollars."" My girlfriend is 27 years old and works as a graphic designer, making about $75,000 a year.
Alla Petriaieva's Avatar
Alla Petriaieva
published in Blogs
Feb 23, 2021
Is Ethereum’s Bomb about to Explode?

Is Ethereum’s Bomb about to Explode?

Ethereum’s software is set for an update in October.Until it is finished, participants in the Ethereum blockchain must determine how to delay the difficulty bomb – code that necessitates a steadily increasing amount of computer power to mine blocks and unlock rewards – that is already in place.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Aug 07, 2018
When Is the Next Recession Coming?

When Is the Next Recession Coming?

However, we also know that economists predicted 22 recessions out of 11 that took place since 1945. Are there real recession signs we should watch for?Indeed, the answer is yes, and here are a few very important ones: The first one is almost obvious and known to everyone – it is the Fed.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 22, 2020
Central banks have been buying $2.4 billion in assets every hour for the past two months

Central banks have been buying $2.4 billion in assets every hour for the past two months

Some $17.8 billion has been poured into  bond markets over the past week, the biggest move in more than three months.Around $3.5 billion has been invested into gold, the second largest on record. 
Rick Pendergraft's Avatar
Rick Pendergraft
published in Blogs
Feb 07, 2021
Mid-January Short Interest Report Shows 8 Stocks with Good Fundamentals and High Short Interest
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 10, 2021
How to Start Trading Penny Stocks

How to Start Trading Penny Stocks

Penny stocks have long been marginalized within the professional investment community, oftentimes being painted with a broad brush of simply being “too risky.” Leonardo DiCaprio’s depiction of the penny stock peddling conman, Jordan Belfort, in the Wolf of Wall Street certainly didn’t help.Here are four reasons to start trading them now. Reason #1: Let’s State the Obvious -- Penny Stocks are Cheap A single share of Apple Inc. costs over $350.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 08, 2020
US unemployment rate jumps to 14.7%, the highest in series history

US unemployment rate jumps to 14.7%, the highest in series history

The U.S. economy’s employment fell by -20.5 million in April. The coronavirus crisis led to unemployment rate soaring to 14.7% in the U.S, the highest rate in the Bureau of Labor Statistics-tracked series history that goes back to 1948. However, the figures were better compared to several economists'/analysts' forecasts of 22 million job losses and 16% unemployment rate.  Another unemployment measure that includes those who have stopped looking for work as well as those holding part-time jobs for economic reasons also touched an all-time high of 22.8%.