Monday, August 24, 2009

Its not too late

I took to address this issue when someone asked me what is the right age to invest. When you scroll down you will find for yourself.
Investing is something that is like a toy. You dont have a reason to buy it (ofcourse to play).
Why do people invest? For variety of reasons.
1. To save something for the future
2. Diversify funds
3. Learn market movements
4. Gamble with
But the Noble Investing Formula goes this way
Invest Your Savings> Diversify risks> Set right portion> Reinvest quantum
We can give it the IDSR way of noble investing.

What is investment?
There can’t be a worded answer to this very simple question. It simply means utilizing the present resources and diversifying wealth for future; can be one answer yet it has its infinite meanings through its versatile application in the real practices.
1. The term investment has accrued its cream in this rapid changing world despite the global turnaround. It is the term investment that adds aroma to the active investing herd who total to around 6.5 billion.
2. Investment is generally anticipatory expectation of accumulating wealth via the present resources. Or it can be an asset class that is purchased in closer concern with its income generating ability in the future which can be sold off at a higher price. The mottled fact here is the theory of not using the present resources. Investment cannot be done without Savings.

Basic ways of investing
There are some basic ways to invest your money
a. Depositing it in the bank
b. Lending it to someone at some rate for some period
c. Purchasing stocks from the capital market
d. Buying a property (house, land)
e. Buying gold or silver
f. Investing in Mutual Funds
Warren Buffett’s way:
He is the World’s richest man, and he has made all the money in the stock market. He is one of the world’s greatest investor. His theory is very simple which says before stepping your investments in company first sketch how the company makes money.
Fact File Name: Warren Edward Buffett
Born: August 30, 1930
Lives: Omaha, NE
Education: Univ. of Nebraska, BS, Columbia, MM
Factoid: Rejected from Harvard business school, partly because he was too young. Bet the admissions people are kicking themselves now
Started investment at the age of 11 and regretted for the delay. Mr. Buffet has just 11 employees working for him. And to imagine that most equity research outfits have a battery of analysis working for them. Mr. Buffet’s office does not have a single computer. Buy-sell-hold decisions are made minus computers. This in computer crazy America should be the ultimate joke one would think.
His principles are: Turn off to the stock market, Do not worry about the economy, Buy a business, not a stock, Manage a portfolio of a business

Conclusion: Age doesn’t matter for investment as everything is learnt only when there is a spark to inculcate. Proven with Warren Buffett, the investment Guru.

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