10 Questions From a Beginner Investor
10 Questions From a Beginner Investor
By MONKWEALTH
If you’re researching investing, you’re most probably having some uncertainties that need to be addressed.
By no means a complete list can be compiled to answer every question a beginner might have, but here are a few I’ve heard lately. So, if you overcome investing fear but still aren’t ready to take the leap, let’s see if this post can help with some of your concerns. Isn’t investing risky? Compared to what?
The best way to resolve this concern is by distinguishing between:
Investing and trading - Investing and gambling - Investing and betting
I rarely talk highly of things I created, but I think I did a pretty good job of illustrating the difference between each of those in Become an Investor. And the best part? You don’t need to buy it to read it – the first chapter is available on Amazon as a preview, so you can check it out for free right now. Become an Investor on Amazon
But what about investing being risky compared to not investing? Then you need to learn about inflation. The post Cash vs Stocks in 30 Years is also a great resource to target this concern.
I think Elon Musk has revolutionary ideas. Why not invest everything in Tesla? Interesting… Not the most thorough financial analysis, but a sweet one. Well… Don’t ask me. What do you think is the answer to the question if you should invest in Tesla because you think Elon Musk has a vision?
I mean, I agree with the statement, but doesn’t it imply that the board or CEO of every other successful company lacks vision? Because every cent you put into something is a cent that won’t be used elsewhere, so why TSLA specifically?
At the end, if you did your due diligence, you can enter with an adequate part of your portfolio. But make sure to have the rest of your wealth allocated in a diversified portfolio and get properly compensated for the systemic risk you’re assuming anyway.
What is a diversified portfolio?
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