Investing

Investing sensibly is easy. We'll say that again. Investing sensibly is easy.


Why is it thought to be difficult?

Because there is an enormous range of opportunities available to the investor. Many of these are complex products that are difficult to evaluate. Many are carefully packaged to target the retail investor (that means you and me), but often with features or weaknesses that are hard to discern. What is certain is that choosing between these opportunities requires analytical skill and economic understanding.

Why is it easy?

Because, if investments are analysed by type, just 1% are quite sufficient to build a sensible investment plan that is simple to understand. Of the rest:

  • 10% are sophisticated products that, properly used, could make a contribution to the private investor's portfolio,
  • 10% are special-purpose investments designed for specialists
  • and the remaining 79% are junk

In Simple Investing we'll show you how to identify the 1% and how to use it. That's easy.

Later, if you want, in Advanced Investing we'll show you how to add a layer of sophistication. That's harder, but more fun.

For now, there is one more foundation step.

 

Move to the last Foundation step: