Login | July 09, 2026
Seeking fast growth
Motely Fool
Published: July 7, 2026
Q. I'm going to need a down payment for a new home in a few years. What should I invest in to grow my money quickly for that? -- S.A., Akron, Ohio
A. There's a tradeoff between risk and reward. Most investments dangling potentially amazing returns (for example, penny stocks) carry significant risks, while the "safest" investments (such as government bonds) tend to grow much more slowly.
It's hard to beat the stock market if you're looking for a solid long-term growth rate at a reasonable risk, but that's only for money you won't need for at least five, if not 10, years. That's because a crash or correction could happen in the near-term, and your investments may need time to recover afterward. You don't want your down payment fund's value to shrink just before you need it.
For parking shorter-term money, consider investments such as certificates of deposit (CDs), short-term bonds or money market accounts to get a little growth while protecting your assets.
Q. How can a company's earnings per share rise when its earnings don't? -- T.I., Seattle
A. It can happen if the share count has shrunk. Imagine Old MacDonald Farms (ticker: EIEIO), with 10 million shares outstanding and $50 million in net income. Its earnings per share (EPS) is $5. If it buys back 1 million shares (leaving 9 million) and then earns $50 million again in the next period, its EPS will increase to $5.56 ($50 million divided by 9 million).
Share buybacks can serve shareholders well, as they boost the value of remaining shares -- but they shouldn't be executed when the shares are overvalued. Paying too much to repurchase shares destroys value.
Fool's School
Foolish Investing Philosophy
If you've been reading the Motley Fool's articles online or in newsprint or have been listening to our podcasts, you might be wondering about our overall approach to investing. Here's a summary of our investing philosophy.
We prioritize buying and holding high-quality stocks for long periods. We focus most on the business fundamentals of the companies in which we invest, rather than on the short-term movements of their stock prices.
When we recommend a stock to any user of our premium subscription services, we recommend buying and holding it for a minimum of five years. When we write positively about stocks at our free website (at Fool.com) and in our newspaper feature (here!), we similarly hope that you'll invest only money that you won't need for at least five years.
Let's talk about the stock market. It fluctuates: up 5%, down 10%, flat for months, up 40%, down 15%. The stock market actually loses value in one out of every three years. But over decades-long periods, historically, the stock market's value rises and makes money for investors. Why? Because over long periods of time, companies' minor setbacks are dwarfed by their major accomplishments. A stock's long-term performance reflects the efforts, financial discipline and creative innovation of companies, entrepreneurs and people like you.
To invest the Motley Fool way, we suggest aiming to buy stock in 50 or more companies and to hold each for at least five years. For best results, add regularly to your investment account(s) and hang on to your holdings through inevitable market volatility. Not every investment will be a winner, but with your winners, let them keep winning. Focus on long-term gains. You can build a portfolio worth millions of dollars over time by consistently investing small amounts.
Letting great companies work and succeed for you as you make money calmly, methodically and over your lifetime can lead to financial freedom. Our goal is to make you smarter, happier and richer -- for life.
My Dumbest Investment
Commodities Trading Fiasco
My most regrettable financial move was due to naivete: In my 20s, I thought I could predict commodity prices just from reading the news. Against my broker's advice, I bought cattle and silver. I lost about two-thirds of my investment. I guess I had to prove to myself that commodities trading wasn't a good place for a naive investor. Lesson learned. -- T.H., San Jose, California
The Fool responds: You lost a lot, but as the North American Securities Administrators Association has noted, "Investors investing in commodities must be able to bear a total loss of their investment."
Commodities can be extremely risky. They're generally raw materials and basic goods such as oil, natural gas, precious metals, cotton, coffee, soybeans, wheat, corn and livestock. When you invest in commodities, you might be taking possession of the physical goods, or you might be investing in commodities futures contracts, agreeing to buy or sell certain amounts at a certain price at a certain time. You might also invest in commodity funds.
Commodities are notoriously volatile, subject to factors such as bad weather, inflation and global unrest. Most of us would do well to steer clear. The Financial Industry Regulatory Authority warns: "Be cautious of claims that you can make large profits from trading futures. Although the high degree of leverage in futures can result in large and immediate gains, it can also result in large and immediate losses."
(Do you have a smart or regrettable investment move to share with us? Email it to TMFShare@fool.com.)
Foolish Trivia
Name That Company
I trace my roots way back to 1853, when the inventor of the elevator safety brake sold his first elevator. In 1854, he had P.T. Barnum demonstrate it. In 1900, I introduced my moving staircase at the Paris World Fair. Today, based in Connecticut and with a market value recently topping $27 billion, I'm a dominant global elevator and escalator specialist. I move some 2.5 billion people daily and maintain about 2.5 million customer units. My elevators have been installed in structures like the Eiffel Tower, the Washington Monument, the Empire State Building and Seattle's Space Needle. Who am I?
Last Week's Trivia Answer
I trace my roots back to 1954, when two fellows founded me in Miami. In 1957, one invented the flame broiler, while the other invented the Whopper. They got franchising rights in 1961 and soon after launched Whopper College to train franchisees. Pillsbury bought me in 1967, and in 1988, Grand Metropolitan PLC bought Pillsbury. I was sold to Texas Pacific Group (and partners) in 2002, then to 3G Capital in 2010. In 2014, I was merged with Tim Hortons, under the Restaurant Brands International umbrella. I boast more than 19,700 locations in 120-plus markets. Who am I? (Answer: Burger King)
The Motley Fool Take
Blue-Chip Dividends
Investors looking for stocks to boost their income should consider leading consumer-staples company Kimberly-Clark (Nasdaq: KMB), which has paid a dividend for 92 consecutive years and raised it for 54 consecutive years. The stock's dividend yield has soared to 5% recently, driven in part by its falling stock price.
Sales growth and profit margins are under pressure due to factors such as the sell-off across the consumer staples sector, inflationary cost pressures due in part to high oil prices, weak consumer spending due to cost-of-living increases and uncertainty around Kimberly-Clark's pending acquisition of Kenvue.
Yet unlike companies with high-yield stocks but falling earnings that must use debt to fund their payouts, Kimberly-Clark continues to generate plenty of operating cash flow to support its long-term capital spending plans, dividend and share repurchases.
Meanwhile, it expects profit margins to improve, with organic growth accelerating in the second half of 2026. Plus, the stock is inexpensive, recently trading at a forward-looking price-to-earnings (P/E) ratio of 13.2, well below its five-year average of 18.5.
Long-term investors who believe in the staying power of Kimberly Clark's brands (such as Huggies, Kleenex, Kotex, Scott and Viva), as well as the brands it will get from Kenvue (like Neutrogena, Aveeno, Listerine, Band-Aid and Tylenol), are getting a great opportunity to scoop up shares of Kimberly-Clark on sale. (The Motley Fool owns shares of and recommends Kenvue.)
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