Australia Markets close in 3 hrs 13 mins

Is it easy to get rich with ASX shares?

Sebastian Bowen
Green plant shoots out of pile of coins

Is it easy to get rich with ASX shares and the Australian stock market?

If you ask people with little interest or experience with investing in ASX shares, you might hear things like ‘its all just gambling’ and ‘the stock market is one giant casino’.

People with this mindset see successful ASX investing as nothing more than ‘getting lucky’, just like any other form of gambling.

Whilst I personally abhor this kind of mindset, it can’t be denied that a lot of investors try and play that game. In reality, getting rich quickly in the stock market can only be done with speculative investing (gambling) – betting big on a risky play.

That is not easy to pull off – especially if you want to make it your modus operandi.

But it is a lot easier to get rich with ASX shares if you play the long game instead.

The benefits of a long-term mindset

Warren Buffett (one of the greatest investors of all time) is 89 years old and the world’s fourth-richest person – with an estimated wealth of around US$ 88 billion, according to Forbes.

But Buffett only made his first million when he was around thirty and his first billion circa 50.

He wasn’t gambling, he got rich slowly.

And I think anyone can follow in his footsteps (albeit probably not all the way to $88 billion).

All you need is the right investment choices, consistent investing and a healthy dose of time. Compound interest works best with these three ingredients and is the real secret to building wealth.

Einstein didn’t call it the eighth wonder of the world for nothing!

Even if a hypothetical investor bought ‘boring’ blue-chip ASX shares like Commonwealth Bank of Australia (ASX: CBA), Woolworths Group Ltd (ASX: WOW) or CSL Limited (ASX: CSL) a few decades ago and just sat on them, they would have benefitted enormously and would likely have a portfolio of formidable value today.

Even a plain-as-paint index fund like the Vanguard Australian Shares Index ETF (ASX: VAS) would have produced excellent results with the same three ingredients.

Investing is most commonly derailed by depriving your portfolio of those key ingredients – especially by doing things like selling shares during a crash.

As long as you stay true to your plan through thick and thin and invest in good quality companies, I think anyone can get rich with ASX shares. Just don’t expect it to happen overnight!

The post Is it easy to get rich with ASX shares? appeared first on Motley Fool Australia.

On that note, you might want to check out Our Top 3 Blue Chip Shares To Buy Now

You’re invited! For a limited time, The Motley Fool Australia is giving away a fantastic FREE report detailing our 3 TOP BLUE CHIP SHARES to buy and own for now and beyond!.

So if you like trustworthy, stable, high-performing companies that pay fat fully franked dividends – we’ve got you covered!

Stock #1 is a beloved old Australian company turning its attention to high-margin businesses... and rapidly returning cash to shareholders with its hefty dividend...

While Stock #2 is an online powerhouse that’s rapidly gaining market share all around the globe... poised for years (or even decades) of tremendous growth...

Even better, Stock #3 offers a whopping grossed-up dividend of over 6%! Which beats the rates on term deposits right out of the water – and offers the potential for capital gains, too.

You can discover all three shares inside our new report right now. To scoop up your FREE copy, simply click the link below right now. But you will want to hurry – this free report is available for a LIMITED TIME ONLY!


More reading

Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2020