What is the difference between saving and investing? To put it bluntly, saving is setting aside money, while investing it putting it to work to make more money. Continue reading
“Buy low, sell high.” Simple, right?
There are, of course, other ways to make money investing, such as steadily increasing dividends, interest payments on a bond, or taking income from a real estate investment trust. Compounding, too, is an important idea. Continue reading
A rose by any other name might still be a rose, but what about a dollar? Is the worth of a dollar today the same as it was back in, say, 1970? Or, for a sweeter example, what about the price of a can of Coke? In 1974, a glass bottle of Coke was $0.10. Today, a can of Coke will cost you around $1.20. Why the price change? In one word: inflation. From a can of Coke to your investment portfolio, inflation leaves no survivors in its wake. Continue reading
“It is usually agreed that casinos should, in the public interest, be inaccessible and expensive. And perhaps the same is true of Stock Exchanges.” — John Maynard Keynes
While he’s remembered for the idea that governments should spend in tough times to offset recessions (called “Keynesianism”), British economist John Maynard Keynes nevertheless had an enviable track record as an investor. Continue reading
Traders are the cupcake, sushi, and frozen yogurt shops of the world. Much in the same way that these current food craze shops pop up and then disappear a few months later, traders buy and sell financial assets regularly, but never hold onto any asset for a long period of time. Continue reading