Today's blog takes on a slightly different approach. today we're going to talk about investing and my recent foray into stocks, shares and investment funds. This may appeal to many business owners who want to find the best ways to look after their profit and maximise their earning potential. So this week after much research into investing I have decided to take the plunge, the only way to truly learn is to immerse yourself in the subject.
So with no experience and little guidance I jumped right in spreading my money evenly over 4 separate investments. One cautious, one positive and one adventurous fund with the rest being invested in shares of a well known UK company. Now as we have all seen on TV the excitement of the stock exchange and films like the wolf of wall street etc, I'm sure you are all expecting some exciting ups and downs and buy/sell actions on a regular basis. This couldn't be further from the truth unfortunately.
In real world investing, when you are only leveraging modest amounts of money, it is more of a buy and forget policy. To get any realistic return on investment, the funds will have to mature for 5 years or more and the shares? Well they won't provide me with any tangible profit for at least 18-36 months, so not the excitement the TV promised. Another thing to be clear about is the "profit" claim, this is of course only if things go well, there is a very real risk that I could lose all of my investment, such is the nature of the game. However, what little knowledge I do have through the research I conducted, guided me to diversify my portfolio and encouraged me to spread my risk in four areas of differing risk levels.
It is of course early days and this investment strategy will take time to prove itself. If there are many major updates in this area I will gladly share my insights, or if you have experience with investment and would like to share your insights, then I would love to hear from you.