Personal Finance, Investing & Property
Investing is one of the best things to do with your money. However, there are a lot of mistakes that investors make all the time. Thinking long-term, controlling your emotions and not investing based on what other people say are steps to become a better investor and not lose money in the stock market.
Intrinsic value of a stock tells us what the stock is currently worth. We then want to apply a margin of safety to buy a stock when it is undervalued to maximise our return and reduce our error. This method teaches you one way to calculate the margin of safety price of a stock
In a nutshell: Rule #1 Investing is an investment strategy used to pick stocks. We analyse the ‘4 M’s’ –…
Dollar cost averaging is where you invest your money at set intervals over a period. Advantages include; taking the emotion out of investing, no market timing issues, and we are able to ‘set it and forget it’. However, the main drawback is that lump sum investing beats dollar cost averaging, in terms of returns, 66% of the time.
Investing mistakes are common. There are a number of mistakes investors make, including: speculating, not understanding the company, not taking into account fees, buying/selling on emotion, and trying to time the market. Avoid these mistakes!
Whilst investing isn’t for everyone, there are several fundamental reasons why you should be invested in the market, primarily to offset inflation and grow your wealth
Before you start investing there are a number of factors to consider. It’s important not to overlook these, so you can make the best investment decisions possible for yourself, no matter what point of life you are at.
Compound interest is a powerful concept to build wealth over time. You are able to earn interest on interest, producing exponential increases in wealth over time.
Passive investing is a strategy that can be used by anyone, with minimal time and knowledge required, to deliver returns similar to that of the stock market, to compound wealth over time.