GENESIS
GENESIS
An investment operation is one which, upon thorough analysis, promises safety of principal and an adequate (not extraordinary) return. Ben Graham
ONE BILLION
Did you know that 1 billion pounds of investors’ money are lost in scams every year? One billion. That’s nine zeroes.
Nine zeroes looks like this:
£1 000 000 000…a lot!
We think even a single zero is one too much, let alone nine. It shows that false operators (Bernard Madoff?) will take advantage of people’s hopes and trust and spin that to their own advantage.
Not anymore!
Read further to be aware and increase your investment knowledge while avoiding the mistakes most novice (and sometimes even experienced) investors make.
START THE JOURNEY
You are starting on a journey that will hopefully make you a more knowledgeable individual on how to start investing.
We will never try and sell anything here.
We are impartial, non-funded and fully committed to spread information and knowledge that will enable everyone to take the right decisions when it comes to investing their hard-earned money.
WHY?
You may find that the Internet is both the safest as well as the riskiest place to learn about investing.
In this series of narratives, we will provide details of our experiences – all first hand and useful to know before venturing out.
So, in this first instalment Genesis, we will explain a few things that you should know right from the start.
You must be careful about these.
RISK AND REWARD
Know that it is virtually impossible to generate higher returns without taking additional risks. The key to sustainable wealth creation is to understand how to generate risk-adjusted returns.
If any company is promising above average returns, then they are taking on more risks with money – your money. Be careful.
Remember: all for-profit companies are in the business of making money – they will twist and turn at every corner to maximise their own returns while trying to minimise yours. Be aware.
FEES
Whenever you invest money, no matter big or small, you should ask yourself this question: how much in fees and charges am I paying?
Some companies do their utmost to keep this as murky as they can.
The more fees and charges a company commands, the higher the return they must generate to achieve the high returns promised to their customers. Remember that money organisations are there to make money for themselves, not you.
Do not fall prey to this trap of thinking otherwise.
PAY HEED TO THE WARNING SIGNS
So this was a short insight into what to be aware of. If the bond returns promised by a company looks eye-wateringly high, there is a reason behind it. The reason will almost invariably put the capital you invest – whether it is £85 or £85000 under tremendous risk.
Do not get scammed.
Do your research and always ensure that your margin of safety is intact. Many people rely on their hard earned savings and pension monies to see them through in life. Understandably, there is a desire to get higher returns to fund the higher costs of living. Many unscrupulous and opportunistic companies make it their business to trap individuals by preying on these hopes, fears and aspirations.
Our objective is to warn you against taking decisions that will be harmful to your health and wealth.
We can often get away by making a few, small financial mistakes.
But those larger ones are the most damaging.
Beware of charlatans, crooks and conmen. Their impact on your wealth will usually be devastating and irrecoverable.
SUMMARY
If even a single person becomes only slightly more careful after reading this, then our objective would have been served.
You will learn over time that you do not need to be always smart or savvy to take the full benefits of investing. Your attitude and mindset will be a much more determining factor on your long term success.
It is quite okay to keep going slowly and steadily as long as you don’t make the more serious mistakes consistently.
JarInv will hopefully guide you through that maze of investing.