What are the Basic Ideas On Investing?

Dated Dec 24, 2019; last modified on Sun, 14 Mar 2021

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.