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The Philosophy of Investing

2 Pages 512 Words May 2019

I was never really interested in investing and any subject on it mostly because it was boring to me. This year, learning about investment and learning about the economy got my attention. Although I rarely let my mind winder or pay attention to the investments principles and such, I learned some things about investing.
Investing is basically giving money or giving resource in the presumption of some benefit in the future. On that note, investing in a simple way to say is you giving money or giving in something to a company and later expecting some benefit from it like money back or more materials back. Knowing this even when you’re 18 you can start investing in companies you like or smaller companies you think are going places. When we played that game on market watch I learned a bit about investing just a little more. I invested in big companies like Netflix, Disney and some other company (I forgot the name sorry) I was studying the ups and downs of the results and what I saw first was my investments were going downhill at first I didn’t understand it till I researched why it was happening so I saw that sometimes or most of the time companies can do that. They randomly go down and randomly come back up again. Every time I refreshed the website I was going up then I refreshed it one last time and it started going down. I really don’t know much about investments or investing but I plan to learn more about it in time.

The seven rules for investing goes as shown:
1. Invest for the long term
2. Valuation matters
3. Focus on the real rate of return
4. Spread your risk
5. Don’t go with the flow
6. Invest in what you understand
7. Avoid complacency

Knowing this information helps a whole lot to those who don’t really know what investing is and how to do it the right way. When I invested in Netflix, I think I put about 156 shares because I knew there are a lot of people who watch Netflix but sometimes there “Original” Net...

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