I get asked lots of questions about cryptocurrencies lately (street named 'cryptos'), so I thought I'd look into them in more detail.
Disclaimer: I am by no means an expert in cryptocurrencies, but I've done some research and pulled together a summary of what I think they're all about in this post...
Cryptocurrencies are worth looking into as a long-term investment, provided you:
“Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn’t, pays it.” - Albert Einstein
This post is taken from chapter two of Stop Saving Start Investing. All rights reserved.
I’m sure you know the story of the tortoise and the hare. The hare sprints ahead of the tortoise in the beginning, before taking a nap under a tree. The slow, plodding, risk managing tortoise eventually takes over the hare and wins the race. The tortoise is patient and knows that the race is long.
When it comes to investing it’s usually the tortoise who gets rich in the end. This is because investing is a long-term game, and ‘get rich quick investments’ based on hunches or ‘expert tips’ often end in disaster.
The tortoise beat the hare because he had the better long-term strategy. Think like the tortoise and you’ll go far with your investments!
Having a basic understanding of financial statements is key for anyone who wants to invest in shares.
All sorts of people analyse financial statements. From small time investors, to Chief Financial Officers (CFO’s) of big businesses.
For investors, a company’s financial statements help determine whether it’s a good or bad investment.
For business owners and CFO’s, financial statements drive their business decisions by showing them where their businesses are succeeding or failing.
I'm a firm believer in the KISS ("Keep It Simple Stupid") acronym, especially when it comes to long-term investing. Below is the over-summarised version of the Fund of Funds (FOF) strategy:
The above strategy works well once it's up and running because it doesn't need ongoing maintenance; you put your faith in the fund managers you believe are the best at what they do, and invest in their funds each month.
That's the easy part. The tricky part is deciding which funds you want to invest in. In this post, I'll cover five questions it's worth asking yourself before choosing funds for your FOF investment portfolio.
I've put together 10 of my favourite investing related quotes. They are in no particular order.
Quote 1. Christopher Browne
Investing a bit of money each month over many years will go a long way towards growing your retirement pot. The easiest way to do this is through Dollar Cost Averaging, where you invest the same amount of money each month into your portfolio, regardless of what the market is doing. Over time, this lets you average the prices at which you buy your fund units.
Dollar Cost Averaging (DCA) is great, but Value Averaging (VA) is better. In this post, I'll explain: