How to make 100k in 3 years without sweat

While everyone believe crisis is just around the corner or has started, many people are scare. Scare economy slowdown will effect their life.

If we are scare, we will always be scare. While waiting for the scary time, why not think of how to make 100k in 3 years.

Now is end of 2008. 3 years means end of 2011. Somewhere around November 2011.

Assuming average Malaysian earning RM 3k per month.

They force themselves to save 1k per month.

Not into saving account or FD but shares.

Why shares?

I have seen many shares drop into attractive valuation with dividend yield as high as 15%.

Their Price earning ratio drop to as low as PE 2.

These are two simple but effective method to value a company.

Method is very simple. Find a counter with PE 3 to 4 and dividend yield of 10%.

Look for stable company. Business easy to understand and generating strong cash flow.

Assuming you invest 12k first year. Add dividend become 13.2k.

12k second year. Add first year plus dividend become 27.7k

12k third year. Add second year plus dividend become 43.6k.

When the market recover, the PE for this share recover to PE 9.

Your investment become 99k.

That is almost 100k in 3 years.

Question is, will this happen?

Answer is very high chances. Economy will not be bad for long time and by the time it recover, your portfolio will triple in value.

Once the 100k is on hand, let discuss on how to earn 1 million in 3 years.