Part 2
In the previous post, I talked about why you should start investing now. In this post, I will talk about the kind of investments that you should consider.
Not every investment that glitters is gold. If it seems too good to be true, stay away! I got this advice from a quote by the billionaire investor, Warren Buffet, and it saved me my life’s savings. I was approached by a fishing company in Ghana which promised to pay 10% per month. How mouth-watering is that! Obviously, this was one of the ‘too good to be true ones’, I hesitantly declined. Fast-forward to a few months, the company was in the news for the wrong reasons. They went bankrupt! You can imagine the sigh of relief that I had after hearing the news. I would have lost my money if I had not considered this advice; and this leads me to my next point.
Always seek for expert advice before you make an investment. Some mistakes are avoidable when you get the right information. Always make sure your investment makes sense to you before you go ahead.
You could go wrong. Don’t beat yourself for making a wrong investment choice. Even the most skilled investors have made bad choices before. Masayoshi Son, the founder of SoftBank is known to have lost S70 billion during the dot com crash of 2000. Today he is the 2nd richest man in Japan and one of the wealthiest in the world. It’s good to have a mental ‘insurance policy’ when it comes to making investment decisions. It will come in handy when things get rough.
How can you tell/Tips?
Compare with exchange rate/inflation rate?
Do a search on the company and the investment product
SEC approved?
Invest for a short period at a time and keep the option to roll over
Invest with different fund managers?