Online services giant Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) has made plenty of millionaires over the years. You’d have more than a million dollars in the Google parent’s stock today if you invested just $15,000 when it entered the public stock market in 2004. If you put the same cash to work in a broad market tracker like the SPDR S&P 500 ETF Trust (NYSEMKT: SPY) instead, you’d have a total return of just $105,000:
GOOGL Total Return Level Chart
The secret sauce in million-dollar portfolios: Time and patience
But you can build a million-dollar portfolio without market-crushing stars. Take the index tracker’s compound average returns of 10.3% over that 20-year period, commit to making a modest investment every month, and let it run for a few more years.
For example, imagine setting up an automatic investment of $100 per month at the age of 20. There’s no seed money to start that portfolio, no contribution increases over time, and you’re sticking with that S&P 500 (SNPINDEX: ^GSPC)…
2024-05-27 08:37:00
Link from finance.yahoo.com