I will be writing about portfolio investing. About diversification, about what's going on in the capital markets, but not in "breaking news" mode. There are enough talking heads in your news stream as it is. I will write about major trends, important things that affect the course of events. Essential things don't happen that often, and they shouldn't have a drastic effect on a properly built portfolio. Perhaps just adjust the course a little bit.
We will take a detailed look at the main investment strategies, what is worth investing in and what to avoid in any case. The main focus will be on investing in the public stock market - stocks, bonds, exchange-traded funds. Despite its disadvantages, this is one of the most effective ways to let your money work, and to preserve and increase its purchasing power - i.e. grow your capital faster than inflation. From time to time, I will examine other available instruments - private equity, venture funds, accumulation/investment insurance, etc.
The questions I will help answer here are:
What is the stock market?
Who are the main players there?
Who regulates it?
Where does the profitability come from?
How to get it at the lowest cost?
What won't be here – no news, no hot recommendations no advice to buy a "sure thing" (a hot stock, which "for sure" will rapidly grow) – this is called stock picking and there will be a separate story about it.
You won't find here easy ways to get rich quick. Portfolio investing is not about getting rich quick, but rather a way to preserve and increase your wealth. It's a way of building up capital over a long horizon. My favourite metaphor is to compare it to growing a tree. It takes time, but if you follow simple rules caring for it – it will definitely grow and will outgrow you and your expectations eventually.
Also, since I live in the European Union, I will try to highlight the specifics of investing in Europe. This does not mean that I will only cover investing in the European economy. Fortunately, there are now cheap instruments available that allow you to invest all over the world and from almost anywhere. A good portfolio is a global portfolio.
Buckle up! Let's go :)