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 downside is a near-total loss of control.

127 people saved this idea

Save it with our free app:

Download on the AppStore
4.8Deepstash rating on AppStore
Get it on Google Play
4.8Deepstash rating on Google Play

IDEA EXTRACTED FROM:

Investing for Beginners

10 ideas
www.thebalance.com
Investing for Beginners

TOPICS:

RELATED IDEAS:

  • Servant leadership vs. other leadership styles

    The authoritarian leadership style: The authoritarian style of leadership requires leaders to have total decision-making power and absolute control over their subordinates. Servant leadership upends the top-down power structure. Similar leadership styles: Ethical leadership urges leaders to show respect for the values and dignity of their subordinates.  Servant leadership's emphasis on taking responsibility for the needs and desires of others. Participative leadership style requires leaders to involve subordinates in setting goals, building teams and solving problems but keep the final decision-making in their own hands. Servant leadership includes some of these elements.

    What is servant leadership? - Definition from WhatIs.com

  • A fund explained

    A fund is simply another way to buy shares.  Instead of you buying a slice of a company directly, you give your cash to a specialist manager who pools it with money from other investors (like you) to go and buy a job lot of shares in a stock market. Each fund is made up of 'units', so if you want to invest you'll need to buy units. The value of each unit will rise or fall depending on demand in the market for the fund. Funds can invest in almost anything – countries, energy, gold, oil, even debt. All funds have a theme – anything from geography (European, Japanese, emerging markets), industry (green companies, utility firms, industrial businesses), types of investment (shares, corporate bonds, gilts), to the size of the company. An FTSE 100 tracker fund invests in the UK's 100 biggest companies and therefore is much more mainstream.

    Investing for beginners

  • Renting vs. home ownership

    Rent unless your total monthly cost of home ownership is lower than renting. It’s easy to get sold on the home ownership dream, but if it’s going to jack up your bills, it’s probably not a wise move.  

    60 Simple Rules of Personal Finance - The Simple Dollar

  • Designed for you vs. designed by you

    Default choices are not inherently bad, but the entire world was not designed with your goals in mind. In fact, many companies have goals that directly compete with yours (a food company may want you to buy their bag of chips, while you want to lose weight). For this reason, you should be wary of accepting every default as if it is supposed to be the optimal choice. - James Clear

    Design for Default: How to Simplify Your Decision Making Process