Looking for a common sense investment strategy that is idiot proof? We found a great Canadian book, “The Idiot Millionaire”.
Derek Foster is not an expert or financial professional, he simply presents a strategy of common sense. There is no get rich quick secret but a pure common sense strategy being used. He uses everyday general concepts and examples to show how he analyzes his selected stocks which are outlined in his book in laymen terms.
Derek’s other great piece of advice is “when it comes to creating wealth the ultimate responsibility is yours.” This means no one cares as much as you do when it comes to investing. It is your responsibility to research the right stocks to purchase and how you wish to grow your wealth.
Derek Foster’s common sense led him to a net worth of $1 million dollars by simply caring about where his money was being invested. At the age of 34 Derek Foster retired – becoming the youngest ever Canadian to retire.
Based on his advice how can we use this basic concept to invest wisely and benefit from buying stocks?
Here is a perfect example provided by Derek “If you are a cell phone junkie don’t invest in the manufacture of your cell phone (a one time purchase) instead invest in the company that provides our cell phone service (Rogers or Telus). Do you use their service and pay them every month?”. His point is this service is a must and people don’t mind paying the $50 per month for the luxury of having a cell phone.
If you are looking for a safe and idiot proof strategy this book is a must read. It demonstrates how Derek Foster chooses quality dividend paying stocks, hold and allow them to grow slowly over time. In order to reduce risk, stick to stocks that have been around a long time. Visit his website for more great books and to sign up for his free newsletter.