Our article today begins with why investing in stocks is the best way to increase your wealth. And our stock idea is a perfect example. The company is expected to grow 60.21% annually for the next five years.
Square Inc (SQ)
From The Chartist
Over 89 years (1928-2017) the S&P 500 with dividends has returned 11.53% annually versus an annual rate of return for the 3 month U.S. Treasury bill of 3.44% and the ten year U.S. Treasury bond of 5.15%. From (1928-2017) $100 invested in the S&P 500 grew to $399,886.00, three month U.S. T-Bill to $2,016.00 and 10 year Treasury bond $7,310.00.
Over the past ten year period (2008 to 2017) the S&P 500 has returned 10.27% annually, 3-month T-Bill .42% and ten year U.S. Treasury bond of 4.29%. Over the 30 years ending December 31, 2017, the S&P 500 returned 10.6% vs. 6.4% for bonds (10 year U.S. Treasury notes) and 3.1% for cash (3-month U.S. Treasury bills) annualized. In dollar returns $10,000 invested in stocks earned $205,557, bonds provided $65,123 and cash netted $24,728.
Avoiding stocks to avoid volatility has an enormous cost to one’s financial wealth. As you can see from the historical returns, the difference in performance between stocks, bonds and treasury bills over the past 89 years is enormous. While there is certainly more volatility and risk investing in stocks, investors have been amply rewarded over the long term for taking that risk. The S&P 500 was higher in 69 out of the 89 year period for a 78% batting average.
Square Inc (SQ) is a commerce ecosystem. The company enables its sellers start, run and grow their businesses. It combines software with hardware to enable sellers to turn mobile devices and computing devices into payments and point-of-sale solutions. Once a seller downloads the Square Point of Sale mobile application, they can take their first payment.
With its offering, a seller can accept payments in person via magnetic stripe (a swipe), Europay, MasterCard, and Visa (EMV) (a dip), or Near Field Communication (NFC) (a tap); or online via Square Invoices, Square Virtual Terminal, or the seller’s Website.
Dan Sullivan, The Chartist, www.thechartist.com, 900-942-4278, June 21, 2018