Turning Trash Into Treasure

Mark Twain once said, "The only way to keep your health is to eat what you don't want, drink what you don't like, and do what you rather not." That quote basically sums up what you need to do to invest successfully. The only way to prevent permanent loss of investment capital is to buy when others are selling, like stocks that everyone else hates and behave in contrast to the crowd.

Consider this: The amateur investor who bought stocks in 2008 and sells today will likely have a five-year annualized return that will beat the next five-year annualized return generated by the most sophisticated investor. Equity prices all but guarantee that -- regardless of investor's skill. Five years ago, shares in Whole Foods (WFM) were trading for less than $10; today they are at $58. They would have to move up to $300 in five years, or a valuation of $100 billion, to match the past five years. Apple (AAPL) shares, at $140 five years ago and $460 today, would have to reach $1,300 in five years and a market cap of $1.2 trillion. It won't happen....179 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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