What are the Basic Ideas On Investing?
Things to invest in
- (Least risk) Bonds, Stocks, Startups (Most Risk).
- Why not start a business?
The Amount of Money
- Some investments only make sense in bulk for they have low margins, e.g. stocks
The risk tolerance
- The higher the risk, the higher the reward
- The law protects investors, e.g. startup investors in the US must be accredited
The Time Frame
- Maybe 10 years? Allows for compounding.
- It’s better to let the goal determine the time frame, e.g. retirement, home, etc.