• reesec99

How to earn near-double earnings in the Stock Market with simple methods

As members of the younger generation, there is one thing we all share, that greatly benefits us, and that anyone older desires. What is it? Time. Plain and simple, the millennials and teenagers today are best-suited to create an investment portfolio that we can use for income, cash for an emergency, or even early retirement planning. It's often said that the best time to invest was 10 years ago, but the second best time is today. By educating yourself and starting early, you can help build a solid foundation to create maximum growth and maximum earnings simply by starting now.

As I have started to explore the Magic of the Market and become fascinated with the principles of investing and maximizing profit margins, I have found that right now is the perfect time to invest in the still-recovering pandemic market.

Since the market is slowly rising to pre-pandemic levels, I have found a few key stocks that could be purchased then sold in 2-3 years, creating near or 200% returns.

The Method

The method is extremely simple and time should not be wasted using it: Invest in stocks that are currently trading for 3/4 or less value than they were pre-pandemic. That's it. Invest in stocks that are currently trading far less than they were pre-pandemic, and stocks that had been consistently earning cash. To show this better I'll use example numbers. If you bought a stock that was trading for $100 pre-pandemic, and that stock is now trading at $75 or less, then I recommend buying it. The $75 comes from the ideal that 100/4 =25, and 3/4 of 100 is 75. Now using that example, lets say the stock was a hotel company. The stock is trading for $75 right now due to the decreased business because people aren't traveling and aren't staying in hotels much. Now if you wait 2-3 years for the company to get back on track and recover, then the stock will recover as well, meaning you could sell the $75 share for $100 once the business bounces back, netting a total gain of $25. Now you're probably thinking, That's not double earnings, that's only 25. And for that, you are right however, that was an example using the easy number 100 and the easy 3/4 amount of that, 75. Now if that same stock was $100 pre-pandemic, but the business was hit harder and the stock is currently at $50, then that increases the profit margin, therefore doubling your money.

The Stocks

Now if anything is still unclear or you want to know which exact stocks to buy, I will pick a few example from my research to help illustrate and inspire you. These stocks are selected based on their current low prices, and the value of the Return on Investment or ROI, which is found by dividing the Net Return on Investment (price it sold), by the Cost of Investment (price it was bought), and multiplying that number by 100%, as shown below. Using that formula, you can calculate a stock's ROI which shows how much percent could be gained. For the stocks below, the ROI is calculated by taking the current price as the Cost, and taking the lowest price of the stock in 2019 as the Net Return value (the Net Return value is not exact, but is used as ballpark estimate of the price to sell the stock at. In reality it could be higher or lower, no guarantees).

- Carnival Cruise Corporation. Ticker symbol: CCL

Currently, Carnival is a very attractive example of the previously mentioned method. As of now, January 24, at Friday's close Carnival stock sold for $20.22 a share. Already this stock is a wise investment because of its lower price, and the fact that it has a consistent operating history pre-pandemic. The lowest the stock hit in 2019 was $40.95, so when plugging in the current price and the lowest price of 2019 as the ballpark estimate for the Net Return value, there is an ROI of 202. 522 or 202%. Using those numbers and that ROI, we see that purchasing CCL right now, and selling once the stock regains its losses, you could earn double profit.


- BP Oil. Ticker Symbol: BP

BP is a strong pick for reliability and safety, because it is an oil company and therefore not a commodity, and a relatively safe investment. As of Friday, January 22nd, BP closed at $23.87. The lowest the stock hit in 2019 was $36.26. When those values are plugged into the formula, we get an ROI of 151.90 or 152%. By purchasing BP and waiting, you could be sitting on an 152% gain, making all your money back, and then some.


- Wells Fargo & Company. Ticker Symbol: WFC

Wells Fargo has been struggling to return to its pre-pandemic margins, based on lower interest rates chipping away at profits. As of Friday's close, WFC was going for $31.90. The lowest the stock hit in 2019 was $43.97. When plugged into the ROI, we arrive at 137.83, or 138%. As with BP, this means you will recuperate the original investment, and could earn approx. 38% on top of that.

These are only three examples of multiple companies struggling to recuperate losses and return to original operation levels. The largest industries affected have been travel and the hotel industry. If you decide to use the method stated or the stocks mentioned, please remember that the Net Return on Investment values used for the ROI have only been estimates based on previous data, and that nothing is guaranteed. The best advice to to purchase these stocks at the current low prices, then wait 2-3 years for them to return to true value. Invest at your own discretion.


- Reese Cruz

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