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The world is full of get-rich-quick schemes. Buying FTSE 100 shares is not one of them, as far as I am concerned. Still, it could be a path to riches albeit at a more leisurely speed.
The foundations of wealth creation
In theory at least, getting rich is not that complicated. Buying assets for less (ideally much less) now than they will be worth in future is one way to do it.
FTSE 100 shares are a form of asset. But the key point, as far as I am concerned, is that they represent a stake in a much bigger asset: a company like Shell or AstraZeneca.
So by putting money into such shares when they are attractively valued, piling up (or reinvesting) any gains along the way and holding for the long term, I think it is possible to create wealth.
That depends, of course, on adding some money in the first place. Owning the right shares can be one way to build wealth – but it takes at…
