Investments
I studied International Business, and as my education advanced, I became more and more fascinated about stocks and markets. What interests me most, is that the stock exchange makes it possible for small and individual investors to buy a small piece of a company, and to benefit from its activities.
Investing is a great way to benefit from the market’s price movements as well as from dividend payouts. It largely depends on your goals and the time span of your objectives, and the risk exposure, which investment you should go for. Still, even an annual return of 5% is more beneficial than letting cash sit on a savings account, where interest is hardly able to cover for inflation.
I started investing very small amounts back in 1998 as a student, and unfortunately one of the companies I had put some money in appeared to have manipulated its balance sheets; its share price fell down to zero within the hour. As I did not even had a chance to accumulate some profits out of previous investments, I stopped doing it.
At present, and now having a job, I invest again. The amounts are not huge, and I aim at accumulating wealth one step at a time. Still, the experience in 1998 has made me realize the risk that I am exposed to when I make an investment. I have learned how to read balance sheets, how to analyze companies, and how to estimate market development.
Personally, I use a mix of stock options, stocks, and funds. There are many investment possibilities available today, some more risky, and some are very safe. Generally, the safer the investment, the lower the return on investment you will have. Regardless of the return, I believe it is still a good idea to invest in any product which provides a larger return than a traditional savings account, when taking into account inflation and commission fees.
Currently I have invested around 30% of my assets. I am certainly planning to increase that number, once I have fully established my emergency cash fund, which I am still working on.
