Simple Guide to Investing as a Beginner
A lot of us love to invest and when we ask for one guideline to investing, we are told to just invest in the S&P 500 as it brings an average annual return of 10% but don’t get it twisted, if you have invested in Tesla as at the time it started trading, or if you had invested in Berkshires Hathaway when warren buffet took over, then your investment today would have generated an average annual return of 20%.
How possible is this? How do you invest generally without having trouble investing?
Evaluate your investment properly
Never invest because others are putting their funds into it, never invest into what you are not certain will bring profit for you. Investing in things you are confident about, value the investment before investing and be sure it is not overpriced. If you are investing in stocks, do not invest like traders who look out of next minute highs and lows, rather invest in the company, know the company’s yearly returns, the company’s state and so on. Invest valuably in businesses you understand and watch it carefully.
Cash is not King
Invest do not store cash is one thing that Warren buffet major on regularly as cash always reduces in value thanks to inflation. A penny saved will not be a penny in 6 years based on value, inflation would have changed its purchasing power. Savings can be a good way to accumulate money to start projects, invest and do businesses but it is not a good way to grow wealth.
Invest in commodities that brings return
Investing in precious stone and artifacts are good form of investments but for startups, it isn’t a cool way because unlike stocks that pays dividend as well as increases in price, commodities like gold do not increase in size and thus isn’t good for beginner.
Hello friend, very wise words, saving is not bad only depends on what purpose we do it, informing us well about what we will do with our money is fundamental that will ensure us to do things right or at least keep us safer!
Thank you for sharing.
Thank you so much for the contribution.
These are good suggestions. Becoming an investor requires effort and understanding, and there's never too many basic starting points for beginners.
Nothing good certainly is easy to achieve, effort and dedication is highly necessary.
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I grab something here. True you have said. Saving can be a great way to accumulate money but it is not the best way to grow wealth
Correct friend thank you for reading.