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 Investing defined

Investing defined

Investing is about laying out cash or assets now, in the hope of more cash or assets returning to you tomorrow, or next year, or next decade.

Most of the time, this is best achieved through the acquisition of productive assets.

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Investing in Real Estate

Investing in Real Estate

Real estate investing comes down to either developing something and selling it for a profit or owning something and letting others use it in exchange for rent or lease payment.

It can allow someone without a lot of net worth to rapidly accumulate resources, controlling a far larger a...

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Outright vs Pooled Ownership

Outright Ownership: You will buy shares of individual companies directly. To do this right requires a certain level of knowledge.

Pooled Ownership:  You mix your money with other people and buy ownership in a number of companies through a shared structure or entity. The do...

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Publicly traded stocks

Publicly traded stocks

If you are the type of person that likes companies that are stable and gush cash flow for owners, you might be drawn to 

  • blue-chip stocks,
  • dividend investing,
  • dividend growth investing,
  • value investing.

If you prefer a more aggressive port...

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Types of business equity investments

  1. Investing in Privately Held Businesses: These are businesses that have no public market for their shares. They can be a high-risk, high-reward proposition for the entrepreneur.
  2. Investing in Publicly Traded Businesses: Private businesses sometimes sell part of themselves...

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Investing in Fixed-Income Securities (Bonds)

  • When you buy fixed income security, you are really lending money to the bond issuer in exchange for interest income.
  • You can buy certificates of deposit or money markets, or invest in corporate bonds, tax-free municipal bonds, and U.S. savings bo...

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Investing in Stocks

  • It means investing in common stock, which is another way to describe business ownership or business equity.
  • When you own equity (the value of the shares issued by a company) in a business, you are entitled to a share of the profit or losses generated by that company's operatin...

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Productive assets explained

  • Productive assets are investments that internally throw off surplus money from some sort of activity. 
  • Each type of productive asset has its own pros and cons, unique quirks, legal traditions, tax rules, and other relevant details.
  • The three most common...

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Owning Assets

Once you've settled on the asset class you want to own, your next step is to decide how you are going to own it.

If you decide you want a stake in a publicly-traded business, do you want to own the shares outright, or through a pooled structure?

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Decide Where You Want to Hold Those Assets

Your decision can have a major impact on how your investments are taxed.

Choices include taxable brokerage accounts, Traditional IRAs, Roth IRAs, Simple IRAs, SEP-IRA, and maybe even family limited partnerships.

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6.71K reads

CURATED FROM

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lolaf

"You have to go broke three times to learn how to make a living." ~ Casey Stengel

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Focus On The Day

Much of our anxiety comes from uncertainty about the future. We never really know what will happen tomorrow or in a year from now.

The best thing you can do is to focus on your very next step, right now. Do something with your day. Forget about the rest.

Passive Investing

Passive Investing

  • To ensure the highest margin of safety, choose an investment that gives consistent returns.
  • The most conservative investor will avoid short-term market volatility by investing in assets over the

Investing is a long-term play

Investing is a long-term play

  • Investing is most commonly thought of as an attempt to profit on transactions, stocks, or assets.
  • Often, there is a “safety first” approach, as the most conservative-minded investors will trade off higher returns i...

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