2 Investing Tricks to Double Your Money

Everyone wants to double their money. That sounds pretty nice, doesn't it? The big secret is it's almost assured if you do the right things. The catch is it takes time, patience, and staying the course. Most people don't have the patience and temperament to wait for long periods, especially in the face of market volatility, but those who do can prosper. Here are the two investing tricks you need to master to double your money.

The first trick is only owning companies that you are virtually certain will be much larger and more profitable in five, 10, and 20 years. That means you'll be focusing on companies that have huge long-term growth opportunities and competitive advantages that are insurmountable for competitors, even over decades. These are companies you'd be comfortable putting one quarter of your net worth into knowing the stock market would close for the next 10 years and you wouldn't be able to sell the stocks. Naturally, this strict criteria narrows your universe of investment-worthy companies substantially.

It also tends to mean you won't be spending your time on companies selling commodity products, turnaround situations, highly indebted companies with uncertain prospects, and most micro caps. Certainly, it's possible to own an "inevitable" micro-cap company, but your odds are worse.