As investors may ask Can I get rich from stocks? Your question is a common question in the minds of young investors. This is normal because many parties are promoting stock investments in such a way that they seem to be able to earn a lot of money investing in this tool.
Let’s read the articles below to answer these questions:
Is it possible to get rich from stocks?
The answer is possible
Just a few records, namely:
1. Income from stocks depends on capital.
The first thing to note is that the amount of stock earnings depends on equity. For example, you invested in Share A in 2017 with a small investment of Rp 1,000,000. Assuming the share price movement was the same as JCI from July 2017 to July 2022, JCI added. Up 18.3% which means that within 5 years your investment amount will increase by just Rs 183,000.
That is, in terms of raising capital. In terms of dividends, let’s say Rs. 1,000,000, you get 100 shares. Then Company A pays a dividend of Rs.125 per share every year. So the amount of profit you will receive is 125 x 100 x 5 or IDR 62,500 in 5 years.
This amount will definitely increase if you invest IDR 10,000,000 from scratch, or even IDR 100,000,000, or continue to increase the small amount you invest all the time.
2. Investing in stocks is like any other business.
Investment is like a business. Sometimes it goes up, sometimes it goes downIn the example above, you know that JCI over the past 5 years has increased 18.3%.
However, this number is not steadily accumulating. JCI dropped 28% as COVID-19 began to hit Indonesia. This means that you must be prepared for losses when investing in stocks.
3. Get rich fast from stocks? Not big!
The Composite Stock Index aka JCI is an index that shows the average movement of stocks in the Indonesian capital market. If JCI increases 18.3% over 5 years, the increase in the price of IDX-listed shares within that period will be. At around 18.3% too, or you need 25 years to earn Rs 1,000,000 selling profit and even after that. If the movement is consistent
What this means is that you won’t be able to get rich instantly from stocks. Every business needs a process to reach break even. So avoid people who offer quick stock investment benefits. Because this person is definitely a scammer.
4. Stocks are not rich if they buy fried stocks.
Fried Stock It is a stock with little liquidity, but suddenly the price goes up for a moment and then decreases again. For speculators and short sellers Stocks like this can be profitable. But this certainly does not apply to investors who have a long-term investment approach.
Therefore, investing in stocks must be supported by sufficient fundamental and technical capabilities. If you have no educational background in this field You can learn by doing or learn first through various sources. that are widely available on the Internet
Examples of rich people from stocks
1. Lo Keng Hong
as a stock investor Surely you are familiar with the name Lo Keng Hong. It’s safe to say that he is Warren Buffett of Indonesia because he specializes in investments. worth investment.
from multiple news sources His current net worth is $625 billion excluding unshared assets and assets. This number looks big But remember, he didn’t get that value right away.
Lo Kheng Hong was recorded as a stock investor in 1989 (33 years ago) when he was still working as a banker at PT Overseas Express Bank (OEB). 1996, 7 years after entering the stock market for the first time and 17 years after working in the banking world. (He entered OEB Bank in 1979.)
Lo Kheng Hong’s investments were not always profitable either. Even recently, some of the stocks he owns recorded red report cards. This doesn’t mean he lacks credibility as a stock investor. But naturally, stocks, business and finances can go up and down.
2. Warren Buffett
Speaking of rich stocks but not Warren Buffett, Berkshire Hathaway’s CEO and chairman ranks among the world’s most successful investors with roughly 98 total assets. USD billion as of July 2022
Like Lo Kheng Hong, he also adheres to the concept of a worthwhile investment and not immediately profiting from the investment. In fact, he was a student of self-funded concept creator Benjamin Graham and started investing at the age of 11.
in addition to the experience His investing career was also supported by education. As a teenager, at least he graduated in economics and business from three leading universities: the Wharton School at the University of Pennsylvania. University of Nebraska and Columbia Business School from Columbia University.
The investments he makes aren’t always environmentally friendly. For example, Apple’s stock price was in the red in mid-June. But instead of selling because FOMOBuffett and his company have increased their stake in the tech giant. (Source: Forbes). Of course, this decision has been carefully considered. This includes investors’ trust in Tim. Cook and his friends too
If inspired, learn. How to Choose Stocks Like Warren BuffettWho knew you could imitate it?
3. Andica Sutoro Putra
Andika Sutoro Putra, one of the successful millennial investors who became a young billionaire with stocks, founder LandX, a stock-raising company. Started investing at the age of 15. At that time, he started investing with 10 million, after receiving a 50% return in just 6 months. He then increased his small investment to 100 million.
Not always profitable, investment of 100 million lost 30%. However, all efforts of this investor, who graduated from Management & Business School at Pelita Harapan University (UPH), were successful. Now his wealth is worth billions of rupiah and he is successful as a writer. stock investment book quite famous