The Price You Pay Determines The Base Earning Yield

One advantage of investing in stocks has over investing in property is that you can start small with only $1,000 and without the need to carry the heavy burden of debt.

But, is starting with such a small amount of money worth it? Especially if you are not using debt as leverage? Yes, absolutely.

The Little Bluey Portfolio.

This is the primary purpose of the Little Bluey $1,000 Portfolio. Along with showing the Share Investors Blueprint members, and prospective members, the seven investment steps are put in practice.

These seven steps are the same lessons you will find on the page Have You Given Up?

And, I’m going to explain how I have grown little Bluey from $1,000 from January this year to $4,500 today.

Start with the End in Mind.

The goal is to grow Little Bluey into $2 million within 20 years.

Let’s look at what is required to achieve this goal.

I will need to contribute $2,000 each year and earn a compounded annualised return of 20%.

According to Noel Whittaker’s compound interest calculator, it would take approximately 16 years to grow the value into $2 million. This gives me a four-year buffer, which will help cover the down years and taxes payable.

Timeline of Investments to date.

My first stock purchase was Vita Group (VTG.ASX), purchasing 826 shares on the 12th of January at $1.20 per share.

On the 13th of March, I purchased an additional 588 shares of Vita Group, Which lowered my Purchase per share cost down to $1.117 per share.

The second stock purchase was Adairs (ADH.ASX), purchasing 847 shares on the 19th of March at 71 cents per share.

Six days later purchasing more shares at 69 cents per share, this slightly reduced my total average purchase price per share.

By purchasing, both Adairs and Vita Group, when the share price fell at a lower share price, I was dollar-cost averaging down. An effective strategy to lower your purchase price per share, which reduces the profit breakeven point.

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