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Invest or save money?


Predrag V
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Hi Predrag, thank you for asking this question. 

In general, investing is always a preferred option. Additionally, investing in the stock market is the most likely choice for many investors as it offers a high growth rate, although the risk associated with investing in stocks is higher as well. In essence, the higher the return, the higher the risk as well.

Some people also prefer to invest in more secure assets, such as government bonds. They are far more secure than stocks since the governments are their guarantees. However, they also offer much lower return rates.

“If you had to choose between buying long-term bonds or equities, I would choose equities in a minute. If I were going to own a 30-year government bond or own equities for 30 years, I think equities will considerably outperform that 30-year bond,” the legendary stock market investor Warren Buffet once said.

Before you invest, we advise you to first analyze the market that you are looking to invest the funds in. The basis analysis should be conducted both from the technical and fundamental aspects. 

Fundamental analysis is looking to measure the natural value of an asset. For instance, fundamental analysts tend to look at Apple’s revenue, cash flow, dividends, management, earnings, growth etc. This way they would calculate the value of each Apple share.

Conversely, technical analysts would simply look at the market price of Apple shares to tell you the price. They believe that all financial and fundamental factors are priced in.

Although completely different, these two methods can work together in an efficient manner. First, you should analyze the stock from a fundamental viewpoint. This should tell you whether this stock has a good outlook. If the answer is yes, then the technical analysis should help you WHERE to buy the stock i.e. the price. This way, you will get the price levels at which buying the stock X is attractive.


 

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Many banks offer deposits that can be used as a personal piggy bank and at the same time you can earn a small percentage of the amount that you have invested in this deposit. It is profitable and the risk is practically non-existent in this. However, with investments, you can earn much faster and then almost immediately withdraw your money

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On 8/3/2022 at 7:10 AM, NaryaJonson said:

Many banks offer deposits that can be used as a personal piggy bank and at the same time you can earn a small percentage of the amount that you have invested in this deposit. It is profitable and the risk is practically non-existent in this. However, with investments, you can earn much faster and then almost immediately withdraw your money

I work at The Finity Group and I sometimese see that people are afraid of losing money because they don't know how to invest. They are doing the right thing not to start investing without proper knowledge. However, if you learn how to invest, it is best to invest your money. On the other hand, if you need to save for something in the long term, it is best to use a bank deposit.

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