To be honest: it is not presumptuous to aim for 1,000,000 euros with shares. Only those who think big often have the mindset to achieve particularly gigantic results in the long term. So having your head in the clouds can be a smart move.
Nevertheless, the goal is of course long-term: you will need time. And return. As well as a performance that outperforms many broad markets.
The approaches for this project can be quite different. Anyway, here’s how I would invest now to reach the $ 1,000,000 goal with stocks.
Goal: Reach 1,000,000 euros with shares!
In order to achieve the goal, one should of course be aware of the situation we are in now. The broad markets corrected a little. However, with a DAX level of over 12,300 points, we are still in a phase in which many valuations are comparatively high. This is an important starting point.
At the same time, individual representatives and industries have problems: Breaking ground numbers lead to a higher rating in the short and medium term. This in turn could lead to limited price performance. Or altogether to a rather poor return potential. Investors should also keep this in mind if they want to achieve special results now. Or even market-breaking returns in order to reach the target of one million euros.
All of this leads to one realization for me: If you now want to reach the foundation for a million euros, you should rely on growth stocks. This in turn is my way to achieve 1,000,000 euros in the long term.
What is special about growth stocks now
Admittedly, high-growth stocks often have more ambitious valuations. They may also be more volatile. Or break in more during correction times. However, these are often symptoms of a psychologically more difficult market. And a peculiarity that can make growth stocks particularly interesting in this case.
As some quarterly figures now underline, many strong growth stocks have disruptive and growing business models. Or, to put it another way: Although the shares may collapse in part (or at least corrected in the last Corona crash), companies are working on a better, more successful future.
This in turn leads to these growth rockets growing into their valuations in the medium to long term. Or just beyond. Should they also become fundamentally cheaper, the turnaround is often all the stronger. A scheme that was shown at least in the aftermath of the last crash.
Finally, the exciting question remains, which growth stocks should you rely on. On the one hand, this may of course be a matter of taste. However, it could be a smart move to rely on established business models and trends. E-commerce, cloud, streaming, digital payment or other areas are keywords that can be used as a starting point.
So I would invest now to reach 1,000,000 euros with shares!
In order to reach a million euros with shares, I therefore rely on strong growth stocks today. Sure, the reviews may also be expensive. However, the companies behind it are often intact, sometimes even in times of crisis. In addition, the strong growth means that they are growing beyond current valuations. Especially when you see the long-term vision behind it.
Is the first million a sure-fire success? No, no question, rather not. However, given the current market situation, it could be the most promising way for the best long-term returns.
The post How I would invest now to reach € 1,000,000 with stocks! appeared first on The Motley Fool Germany.
Motley Fool Deutschland 2020