Category: Passive Income Investing

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How Warren Buffett Makes So Much Money

Warren Buffet is one of the richest people on Earth (currently the 3rd) with his net worth of $73 billion. He has made a tremendous amount of money in his life. How much do you earn per year? How much do you work for your income? Do you like what you do? If you are not happy with your job and income, here is a simple way you can change this in your favor. I will show you how the greatest investor of our time makes billions of dollars every single year. After you read the following lines, you will...

Mutual Funds - The Basics

What Is a Mutual Fund And How To Invest In It – The Basics

What Is A Mutual Fund And How Does It Work? A mutual fund is an investment company that allows a company to pool money from its investors and put it in various securities and financial instruments such as bonds, stocks, short-term debt, commodities and stuff like these. All the holdings of any mutual fund are commonly referred to as a portfolio. Investors are allowed to buy shares in mutual funds and then each share the investor buys represents her portion of ownership in the fund and the revenue it generates. Mutual funds offer to ordinary people the opportunity for potential...

The chart shows the growth of The Dividend Aristocrats compared to the growth of SP500 index for the last 25 years. Source:

How To Invest In The Dividend Aristocrats – Directly Or Through ETFs

This one is another interesting and lucrative investment strategy. The so-called dividend aristocrats is a group of stocks from the S&P 500 index, that have increased the dividends they pay to shareholders for at least 25 consecutive years. Sounds good, isn’t it? Not only these companies have paid dividends for a quarter of a century, but also they increased it every single year. For the last 25 years, a portfolio containing all Dividend Aristocrats would have beaten the SP500 index big time. If you invested $1 000 in the index before 25 years you would have made around $7 990...

This is the formula of compounding interest.

What Is Compound Interest And How To Calculate It? The Compound Interest Formula

What compound interest is… Compound interest is the foundation of investing. It’s even more important, the whole financial system in our world is based on compound interest. It’s everywhere, and this is why it’s so important to understand exactly what compounding is. Here I will talk about the most commonly used compounding interest formulas in our everyday life and this way I will show you how the 8th miracle of the world works. Everybody knows what interest is. If you have $100 and put it in a bank account for a year at 5%, at the end of the year...

The basics of dividend investing.

How To Find The Best Dividend Stocks – 5 Key Things You Must Know

Investing in high dividend paying stocks is a cool way to put your money into work. Why? Because it has many advantages than its alternatives like bond investing. If you are interested in all of the pros and cons of dividend investing, you can check our article on the matter here, in this post we are going to explain some key and very basic things one should know about dividend paying stocks. If you are completely new in this field, you’d better check out our reading about the very basics of dividends. The current article is about the basic terms...

What Is A Dividend? How To Invest In Stocks That Pay Dividends

What Are Dividends? Dividends are a great way for companies to distribute their profit among their owners (shareholders). This is a way for shareholders to generate income from the companies they own. A dividend is simply a payment by a company to its shareholders, it’s usually calculated as a certain amount per share (55 cent per share for instance). So everyone who owns shares of a company that pays a dividend will get the per share amount multiplied by the number of his/her shares. Companies by default are not obliged to pay dividends, their management decides whether or not a...

An example of dividend announcement and dividend dates of Royal Dutch Shell. There are 2 dividend dates - one for the two types of shares (a and B) the company has. The other dates are the same for A and B shares.

When Are Dividends Payed – Declaration, Record, Ex-dividend, And Payment Date

In this article, I will explain in simple words the most important dividend dates. If you still don’t know what a dividend is, I strongly recommend to read this article first… Everybody who invests in dividend paying stock must know what each date means, and how it is used by investors. There are 4 important dates: declaration date, date of record, ex-dividend date, payment date. Here are some details about each and if you still don’t understand them, you can check out the example below. What These Dates Actually Mean Declaration date – this is when the board of directors...

This is how your investment grows when compounding...

The Real Secret For Successful Investments – You Will Be Amazed

There are hundreds of investment funds out there and each of them is trying to actually outperform the market. Many of them have fancy words in their names as growth, low risk, high yield, etc. But the truth is that most of them are … gamblers. Yes, they are gambling with other people’s money and at the same time, they are charging decent fees to do this. According to a study tracking the performance of 355 investment funds for 35 years (from 1970 – 2005), just 7 of them managed to beat the market with more than 2%. 9 out of...