Insights

Here’s how I’d invest in shares today to achieve financial freedom

A strategy to invest in shares today could lead to high returns in the long run. It may even provide an investor with financial freedom.
The post Here’s how I’d invest in shares today to achieve financial freedom appeared first on The Motley Fool Australia. –

toddler in business attire surrounding by floating money representing asx shares beginner investor

An uncertain economic and political outlook may mean that a plan to invest in shares today seems unappealing to some individuals. After all, last year was an incredibly challenging period that could yet continue in the coming months.

However, on a long-term view, buying shares today could be a sound move. Through investing money in a diverse range of high-quality businesses while they trade at low prices, an investor may be able to achieve financial freedom.

Buying high-quality shares today

Investing in shares today clearly carries short-term risks. As such, it could be a good idea to buy companies that have solid financial positions and wide economic moats. Their strong balance sheets that contain little or no debt may mean they are under less pressure should the economic outlook deteriorate. This may increase their chances of surviving what could be a challenging period in 2021 to benefit from a likely long-term stock market recovery.

Similarly, companies with wide economic moats may be able to improve their market positions after present economic challenges. Their unique products, low cost bases or brand loyalty may mean they produce stronger growth rates in the coming years. This may contribute to higher share prices via more generous valuations that make a positive impact on an investor’s chances of achieving financial freedom.

Investing in shares today at low prices

Investing in shares today could be a profitable long-term move because of the low valuations that are present in many sectors. Investors seem to be cautious about the outlooks for a number of industries that could produce disappointing returns in the coming months. However, as the economy recovers and consumer confidence improves, those same sectors could benefit the most from an improving operating environment.

Therefore, unpopular shares that trade at cheap prices could provide scope for strong capital gains in the long run. Buying any asset at a discount to its intrinsic value has historically provided greater scope for capital growth as its outlook improves. Of course, it is important to only invest money in high-quality businesses, rather than simply buying cheap stocks. Otherwise, an investor may end up with a portfolio full of low-quality businesses that lack recovery potential.

Considering risk when aiming for financial freedom

Managing risk is likely to be an important consideration for any investor who is seeking to achieve financial freedom. After all, the world economy faces an uncertain future in 2021.

Therefore, diversifying across a wide range of companies and sectors could be a sound move. It may allow an investor to become less reliant on one or a small number of companies for their returns. This may reduce their risk of loss, improve their return prospects and increase their chances of becoming financially free in the coming years.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Motley Fool contributor Peter Stephens has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Here’s how I’d invest in shares today to achieve financial freedom appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!