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Investment Strategies | How to do it right

Speculation over investment and the guarantee of return has long been the game of investors and business owners. The difference between those who choose to invest with successful return and those who choose to invest and fail is the projection they have set forth for themselves.

Without strategy, investment can be risky and disconcerting. However, if investment is played right, like the great historical minds, who now yield profits one can only dream of, the notion of strategy and investment go hand in hand.  With the increasing amount of opportunity created in today’s financial world with thanks to the fluctuating economy of today, investing has never been easier, but with strategy of course.

 

Pioneering stories of investment

1) Warren Buffet

One of the most pioneering stories of investment is that of Warren Buffet, who could be regarded as the greatest living investor. His business famously known as Berkshire Hathaway, which he has grown into an investing and business conglomerate, is thought to be valued over 200 billion dollars, and whilst doing this he has made his investors very rich.

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His key to success included strategies such as ignoring stock prices. It may seem a little odd, but one of the first things investors look at is stock prices, but Buffets strategy looks at doing research on the company first and then analyses the stock price of the company. If he feels the stock price to be of an undervalued price he will invest. If he finds the stock price to be overvalued, he passes. He also talks about avoiding noise from the media as this can be very influential in decisions making. He also believes a crucial part of investing is absorbing information around you, claiming it to be one of the most import strategies of investing.

Investing in what you understand is an important aspect of being successful. When you understand how things work you already identify what to expect, and therefore do not suffer from any nasty surprises at a later stage. It may seem like a giant leap if you are not used to investing large sums of money with the potential of losing it all, which then makes you ponder the notion of even investing. However, the sooner you invest your money, the more time you are allowing it to grow and accumulate. Investors, who invest early and stick it out throughout the long term, usually see the best finical success in return. A person at the age of 20-30, who invests a sum and then stops, will still have an edge over someone who invests from 30 onwards even if they invest every year. This is because the accumulation of their investment will still yield more because they invested early.

 

2) Neil McCarthy

This is the case for investor Neil McCarthy who started investing in the stock market in the 1970s. Holding onto his investments paid off for him as the increasing price of them and change in the economy makes him worth 2.1m dollars today.

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Delaying investing for year’s means people are usually contemplating what is of priority. They are often confused with investing or spending money on household needs. This confuses needs with wants as we mentioned earlier investing will be more profitable. This means investing takes having a discretionary income, which in effect means having discipline of not spending on things individuals, can go without having.

 

3) Bill Gross

Bill Gross, who is the co-chief investing officer of PIMCO believes by saving and then investing the money in a good idea, which should not be diversified into meaningless oblivion allows investors to have discipline as their idea shoucloseup stacks of Thai baht coins on blue graphs and charts background money and financial conceptsld be invested in but with money saved.

One of the biggest risks of investment is needing your money at the wrong time. By balancing any funds, that you may need within the first three to five years of investing, and figuring out an economic cycle, you prevent yourself from selling your investment at a loss. Instead you will have liquid funds available when you need them even if the market crashes.


4) John Bogle

John Bogle who founded Vanguard Group 1974 made it into one of the world’s largest and most respected fund sponsors. His philosophy advocates capturing the market with returns on investment whilst yielding funds elsewhere, which allows you to need money without pulling out of investment too early.

 

5) Benjamin Graham

As an investor, Benjamin Graham excelled throughout the years. His strategies looked at the value of investing. He believes that investment should be worth substantially more that the investor is paying. His belief was always to analyse and sought out companies with strong balance sheets or companies who have very little debt giving them ample cash flow.  

Although each of these investors are different, their strategies can be adopted by many and used to help invest and yield profits. Understanding how the great minds invested and now how business worth millions allows any investor to understand the first steps required for investing successfully.