5 quotes by famous investors that will help you invest money in the right way
New companies are constantly appearing in the world, they are growing, changing their value and position in the market. How can a beginner investor figure out what to invest in and not lose their money?
Especially for this occasion, we have selected 5 quotes by famous investors that you will definitely remember for the rest of your life!
1. "Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas! " - Paul Samuelson.
If you think that investing is like gambling, you are wrong; this perception can lead to a capital loss. If you get high from the process and have fun, then, most likely, you lose money. Proper investment that leads to success is a long and boring job that requires patience. But with the right approach and good training, you will get a large profit years later.
2. "Know what you own and know why you own it" – Peter Lynch.
This rule will help when investing in shares of any companies. Before you invest money, carefully analyze the activity of the company: figure out what it does, what it produces and what profit it makes, who manages it and what its future plans for development are, whether people need it, and whether the demand will be as high tomorrow as it is today. At the same time, we should not forget that a lot of things can change: the right investment today can become the wrong one in the future. Therefore, you should regularly analyze and re-assess your investment portfolio.
3. "How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case!" - Robert G. Allen.
Investments in savings accounts are relatively safe. But that only means that you probably won't lose your money. At the same time, you will not get a significant profit from such investments either: as a rule, savings accounts rates do not exceed the inflation rate. A deposit account is a good place to keep your financial safety net, and if you want to make money, take a closer look at investing in trends. We have written about this earlier.
4. "An investment in knowledge pays the best interest" - Benjamin Franklin
At the initial stage, the best investment is an investment in knowledge. Reading books, articles, and entire websites about the basics of investing will help you understand what is worth investing in and what is not. Try to get information from professional business sources that provide only verified data. At the next step, start analyzing the current state of companies and markets that you are interested in, learn how to monitor their dynamics and read financial reports.
5. "Invest in yourself. Your career is the engine of your wealth." - Paul Clitheroe.
How do you raise initial capital for investments if you are not a son of rich parents? A successful career will be the first stone to lay the foundation for future wealth. Career growth, in turn, depends on your knowledge and professional talents. If you don't have another plan or business idea at this stage, invest in yourself and acquire new skills that are in high demand: take training courses, change your line of activity or place of work to strengthen your position or gain new knowledge. Identify your talents and make them work for you. A good career will bring you both money and an understanding of what you can invest it in with the right prospects.
What do you think about these tips? Which of the points have you already outgrown, and which ones do you still have to master?