Why Invest?
“Investing is the process of laying out money now to receive more money in the future.”
-Warren Buffett
Invest in YOU
“You can’t go back and change the beginning, but you can start where you are and change the ending.”
C.S. Lewis
THE BEST INVESTMENT
The most important investment you can really make is in yourself. You are your greatest investment!
Risk vs Return (1972-2018)
Cash 0.72% (Lowest Risk)
Bonds 4.5% (Low Risk)
US Stocks 7.7% (Medium Risk)
US Micro Cap Stocks 11.7% (High Risk)
YOU 100% (Zero Risk)
BEFORE GETTING STARTED
PATIENCE
No need to panic even when the markets are down. Most of the work is done over time by compound interest. Quality takes time!
DIVERSIFY
Never put all your eggs in one basket! It’s usually disappointing to focus only on a few specific stocks. Over the long term, diversification will protect you from unpredictable market volatility and unnecessary risk.
ENTRY POINT
There’s never a good time to enter the market, and there will never be a “right time.” Timing the market will only lead to missing out on big market moves.
SIMPLICITY
Learn and invest as early as you possibly can. Start with diversified funds. There is no need to pick a “winning” stock to be successful, especially if you are still a beginning investor. Simplicity is the ultimate sophistication!
UNCERTAINTY
Nobody can predict the future of the markets. Anything can happen, and sometimes it’s just beyond our control. There won’t always be an explanation, and Mr. Market will most certainly do whatever it wishes. So start slowly, but surely!
BORING
According to a study by successful fund company Fidelity Investments, the investors with the best-performing portfolios were “dead” people who forgot they even owned funds in the first place!