Investing Easy teaches you how to invest profitably and safely. It shows you strategies the pros use to increase profits and protect you from loss.
Investing Easy
The Basics of Investing
Author: Elfinn Orvarodd
What is investing, and why should you do it? It’s surprising, but not that many people really knows what investments are. Sure, they have heard of investing, but many people do not know how it is done and how to profit from it. Even fewer actually do it themselves. There are also people who do some investing, but they don’t really know what they are doing.
Defensive investors on the other hand, are those who take the safety first approach, always ensuring their investments are safe, yet still looking for good returns.
In Benjamin Graham’s best selling book, The Intelligent Investor, Mr. Buffet says that there is a noticeable difference between speculating and investing. According to himself, investing is when the gamble is carried out with enough personal analysis that the person investing can be certain that he or she will get an adequate return. For every investment that isn’t thought through and does not display a likely promise of good returns, this can be called “speculation” as well.
So, in order to be a successful investor, according to Buffet, you need to carefully research anything you are thinking of investing in, and be certain that you find not only good evidence that you will make returns on that investment, but also ensure that the protection from risk is strong.
Aggressive investors are the ones who look for the highest possible returns, while also making sure that their investments are going to be relatively safe.
So now we realize what investing is, we need to pick a style. Looking again at Benjamin Graham’s book, there are two principle types of investing styles.
To learn about investing, look no further than the world’s most successful: Warren Buffet.
It would appear to be true that many of the world’s investors are really not investors after all. Witness the spectacular economic crisis just a few years ago (which we are still feeling the effects of and suffering from). The majority of the people who lost money then thought they were investors, but circumstances have shown that they were actually just speculators and not investors.
Now then, the majority of investors do not fit into this category, but rather, they fit somewhere halfway between the two. For example, Graham recommends that an investment cut between 25 percent to 75 percent in bond investments and common shares is a very safe defensive investment. A 50-50 split therefore is the neutral’s choice, with more defensive investors increasing their percentage of bond investments, as these are thought to be safer investments.
But be aware, there is always some risk out there, so pick your strategy carefully and enjoy!
Visit our site for more advice: GreatStockInvesting.com
Article Source: http://www.articlesbase.com/investing-articles/the-basics-of-investing-5414432.html
About the Author
My name is Elfinn Orvarodd. I am from the EU and the Founder of GreatStockInvesting.com which is a blog targeted towards people that are interested in the Stock market. We will try our best to bring you great articles, advice, interesting topics and the latest online guides available in the world of Stocks.
Feel free to contact me at any time!
These answers should be from the CFA institute under their ethical conduct… These are two other questions:
~How does the Code of Ethics relate to these funds and to investing in general?
~In investing and in handling investors’ money, what role, if any, should moral
social convictions, and/or political correctness play?
Please show sources if possible.. Thanks!
Hi planning to invest some money in chit funds as I heard that It is giving high interest rates. Can anyone help me whether it is the wise way or all chit funds chea????
i know little about how the market works, but am looking to invest some money in penny stocks. preferably a site with no minimum.
Many people made millions and billions before 2008, can people still do the same now in days? Has anything changed, not allowing people to abuse the system, and etc.? Thanks!
I have thought about doing it although it does seem like a losing proposition to me but I would like to learn more about it. I would appreciate any tips/suggestions/websites.
I’ve been reading about people investing their money in metals, gold, coins, etc. to have their value secured when the U.S. economy goes all “digital” (plastic money or something of the sort) or just that cash loses it’s value greatly.
Then there’s people that also say they wouldn’t keep their money in banks. Is that bad or good? Would not keeping my money in banks affect the economy? Is it better to keep cash at home then or invest it internationally?
Is it wise to open bank accounts in different foreign countries to keep it “dispersed” and when one country’s economy falls, it won’t be a big hit to the person that did so because he/she still has money in the other accounts? In what countries would it be best to invest money?
If I have a good amount of money saved, should I be investing it in certain things that over time increases my amount of money, like stocks or bank investments? if so, what would be a good example?
Thanks
What is keeping Americans and other people around the world from investing their capital in countries in Africa? Are people skeptical over the pace of Africa’s growth? What makes some African countries more economically successful than others? What’s into the future for Africa? Thanks!
Since Obama was elected Tuesday, most stocks have dropped. Smith & Wesson increased though. My question is that should I invest in .INX stock, S&P 500? -BC they are doing pretty bad right now. They will be back up? If not what stocks do YOU think are gonna rise?
I have an AR-15, and a Walther P22.
Id eventually like to suppress both.
As money is an issue, would you advise getting one can for both( a .223 suppressor), or just start with a .22lr can?
I have been doing my research on the suppressor selections, but i still have yet to come to a conclusion. Which would you prefer?
Australian resident have experience in dentistry wants to become investor cum employee .dentist wants to invest in any existing dental clinic upto 100000 $ anywhere in australia . In any existing dental clinic.
Preferred source of contact is through mail shivveshkumar@gmail.com.