Investing

fundamentals

guide

beginning

Investing is putting resources of any kind to productive use instead of allowing them to remain idle. An investor generally intends to benefit in some way from investing.

Although it is natural to think of money as the resource one might invest, money is just one of many investable resources. Time and skils are important resources to invest wisely. Many other tangible and intangible assets can be invested and/or converted into another form, such as money, to be invested.

There are an unlimited number of legitimate investing strategies, because every investor has different circumstances, timeframes, comfort zones, risk tolerances, resources, etc. There can be no cookie cutter investment strategy that is right for all. Each investor should take on the responsibility of understanding types of investments and investment strategies that fit their own situation. Many investors rely upon esxpert advisers for guidance, and that is wise for many, but even so, understanding enough to keep advisers on their toes is also wise.

There tends to be a correlation between the risks of any particular type of investment, and the potential returns it offers. Investments that carry high risk generally need to offer higher potential returns to make sense to an investor, and each investor's goals and circumstances establist boundaries of risk tolerance and return necessity.

Investment returns vary in form and timing. They may be tangible or intangible, periodic or one time. Investment returns that compound, such as interest, dividends, royalies, rent payments, etc. than are re-invested, have the potential to create exponential wealth growth if the rates of return are meaningfully greater than the rate of inflation in the economy. A seemingly small increase in the rate of return compounds dramatically over time and result in many times the total returns compared to investments returning at only a slightly lower rate.

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Investing is related to Rule of 72, stocks, bonds, commodities, precious metals, cryptocurrencies, currencies, real estate, time, and many other activities and subjects.

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