Summary: Investing Without a Silver Spoon E-Book

BusinessNews Publishing

• Herausgeber: Business Book Summaries
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 33

Veröffentlichungsjahr: 2013

Beschreibung

The must-read summary of Jeff Fischer's book: "Investing Without a Silver Spoon: How Anyone Can Build Wealth Through Direct Investing".

This complete summary of the ideas from Jeff Fischer's book "Investing Without a Silver Spoon" puts forward a case for sensible investing that yields a long-term return without massive capital at the start. In fact, direct investment plans allow a person to build wealth slowly and steadily by investing in companies at whatever rate they can afford on a regular basis without using (or paying) a broker. By then reinvesting the dividends that are earned through buying more stock, compound growth occurs over the longer term. This summary explains that direct investors can take positive control of their own financial futures. Prospective investors will be taken through the financial jargon, what you need to begin, and how to invest for the long-term, not short-term. It acknowledges that Direct Investment isn’t for everyone – if you have a high interest debt, for example – but believes that good research combined with intelligent decision-making can yield financial freedom and a worry-free retirement.

Added-value of this summary: 
• Save time 
• Understand the key concepts 
• Increase your business knowledge 

To learn more, read "Investing Without a Silver Spoon" and invest effectively! 

Leseprobe

Book Presentation Investing Without a Silver Spoon by Jeff Fischer

Book Abstract

Important Note About This Ebook

Summary of Investing Without a Silver Spoon (Jeff Fischer)

1. The Concept: What Is Direct Investing?

2. The Mechanics: How to Get Started and How To Sell In Direct Investing

3. The Pros: The Advantages of Direct Investing

4. The Cons: The Disadvantages of Direct Investing

5. Suggested Areas of Focus: Industries and Companies To Embrace

7. Tracking Your Investments: Company Valuation and Performance Measures

8. Housekeeping Matters: Recordkeeping, Taxes and Other Details

Book Presentation Investing Without a Silver Spoon by Jeff Fischer

Book Abstract

MAIN IDEA

Direct investment plans allow a person to build wealth slowly and steadily by investing in companies at whatever rate they can afford on a regular basis without using (or paying) a broker. By then reinvesting the dividends that are earned through buying more stock, compound growth occurs over the longer term. By harnessing this compounding effect and avoiding the temptation to spend the dividends, a direct investor can create sizable personal net worth.

In the final analysis, direct investors take positive control of their own financial futures.

Important Note About This Ebook

This is a summary and not a critique or a review of the book. It does not offer judgment or opinion on the content of the book. This summary may not be organized chapter-wise but is an overview of the main ideas, viewpoints and arguments from the book as a whole. This means that the organization of this summary is not a representation of the book.

Summary of Investing Without a Silver Spoon (Jeff Fischer)

1. The Concept: What Is Direct Investing?

Main Idea

Direct investing is the purchase of stock directly from a company without using (or paying) a broker. Direct investment plans will be either:

Dividend Reinvestment Plan (DRP) – where dividends on existing stock will be paid in more stock rather than cash.Direct Stock Plan (DSP) – where stock can be purchased directly from the company for cash.

Supporting Ideas

At the present time, more companies offer DRPs (about 1,100 at present) than offer DSPs (around 500 companies), but with the growth of the Internet, DSPs are projected to be far more common in the future. In fact, it is not inconceivable that every company will ultimately decide direct investing is the most efficient way to raise equity capital and will offer such plans. For the moment, however, direct investment plans are mainly offered by large, long-established companies with a history of paying regular dividends.

What’s the difference between a DRP and a DSP? It’s very simple:

To use a DRP, you must own at least one share in the company you want to invest in – you must already be a shareholder. That typically means you have spent $60 - $100 to buy one share in the company before you start.With a DSP by contrast, anyone can invest in the company by buying stock, whether they are already a shareholder or not. However, there is usually a minimum investment required of between $250 and $500.

And that’s the total distinction between the two types of direct investing plans. Once you’re enrolled in either a DRP or a DSP, you can:

Invest small amounts of money on a regular basis – anything from $10 per month to $50,000 per month or more.Request that all dividend payments be made in more stock, allowing your investment to compound.Avoid all brokers’ commissions and other costs – since you are dealing directly with the company.Buy more shares when the market price is lower or less shares when the price is higher, at your own discretion.Vary your investment amount from month-to-month – or eliminate it completely if cash is tight.Readily diversify your investments by enrolling in a number of direct investment plans.

For most direct investment plans, you only costs will be a one-time startup fee of about $12 to $15, and a similar fee when you sell your stock for cash.