Here is what Mr. Bean Said

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Daily Wisdom
May 29, 2024

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I am Rowan Atkinson

“I have to say that I've always believed perfectionism is more of a disease than a quality. I do try to go with the flow but I can't let go.”

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The Advice Column

Today’s Question: How do I start my Investing Journey?

Most of us are scared of the word investing. What if we lose our money? Nobody wants that. The truth is that the stock market is very volatile and in order to invest, you need to learn to see the bigger picture. Here is how to do that.

  • The first thing that you need to establish, is discipline. There is no investing without discipline. Try to put aside, a fixed amount of money to invest each month. This amount doesn’t have to be a large sum but it does have to be regular.

  • Don’t burn your hands by investing directly into stocks. Warren Buffet has said, the best way to invest is through index funds. In the long run, they cancel out the volatility as they make you money based on the stock market direction as a whole.

  • Personally, I tested out this theory. I invested some amount of money in popular stocks like Tesla, Disney, and Netflix and took the other half and put it in the Vanguard Index fund ( Not a recommendation ). My stocks made a loss, despite keeping it for 2 years plus but the Index fund performed much better and actually made me a profit in that time period. It is harder to make money in the stock market in developed countries compared to developing countries, due to growth potential.

  • Only invest with long-term goals in mind. Investing is a lifetime journey, not a 1 or 2 year saga. Your main goal should be to beat the interest levels the banks provide and keep the extra profit. Don’t keep withdrawing your money, rather collect it in index funds and let compounding do its magic.

  • The Last tip I will leave you with is that don’t panic during Market Crashes. You need to learn to treat market crashes as a “Sale” where all your favorite stocks are up for grabs at discounted rates. ( Only invest after proper research, instead of guesswork).

Good luck with your investing journey. Remember that it’s never too late to get started :)

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