The stock market is near all time highs. Property prices are high. Bonds don’t seem to be doing much. Gold has got more expensive. Bitcoin is still in its infancy. Is cash now king?
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…
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.
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