1. ‘How to stop worrying and start Investing’ from the Great course lecture.
I started the investment when I became 27 years old. The younger is the better for investing. If you are younger, you have little money but you may lost little. And time is an important factor for investments. If you have start younger, you have more time to spend for investing.
This title is fanny, must be parody of the book ‘How to stop worrying and start living’ written by Dale Carnegie. Let’s get started!!
What is investment?
Investing is spending your money, time, or other resources to create or acquires assets. An assets is anything that holds onto its value over time. Financial assets are documents that entitle their owner to receive something of value, generally a set of cash payment.
What makes you worry? There are top 4 threats,
1. Market Downturns.
Market downturns are extremely difficult to predict. During a market downtown, you may worry about your loss. But remember, the price would be back to normal. We have to be patient, and we have to have the time to spare. We need to see the investment in the long term.
2. Bankruptcy
Another risk of investment is the risk of bankruptcy. a firm, the government, or a person can go bankrupt. It almost always means that your asset will lose value. By being alert and proactive, investors can take effective steps to limit bankruptcy risk. For example, if we learn how to read the financial statements of the company, we can know the financial state of the company.
3. Inflation
Inflation is a general increase in prices.There are many ways to measure inflation, but most people are familiar with the consumer price index (CPI), which measure the price of a set of goods and services that a typical household consume. To combat inflation, find investments that keep up the inflation. The stocks seem to be one of them, however the assets that tend to do better at keeping up with inflation also tend to be the riskier ones.
4. Human nature
The biggest threat to investing is human nature. In many ways, our own psychology and emotions do far more damage to our investing success than the market crashes do. Know yourself
These are top 4 threats. The first step to making sure that we don’t inadvertently sabotage our own investments is to become more familiar with investing ‘basic idea’ ‘tools of investing’ ‘know yourself’. And then, make a investment plan.