Warren, What The Heck Is Investing?
Investing series – article #1
Investing can be a confusing minefield to understand. This is even before we try to figure out how to actually do it.
First, let’s understand what investing is (in its most basic form).
- Investing is putting your cash to work to create more cash.
- This is usually done by using your cash to buy assets.
- The goal is for the assets to go up in value and/or bring you extra cash in the future (a return).
Note: Don’t stress yet about the details of an asset or a return. We’ll get to that in future articles.
Still a little confused, let’s simplify.
I like to think of my bank account as a beehive. Each dollar in my account is a bee.
We can choose to invest by sending some or our worker bees (dollars) out into the world to collect pollen and nectar (a return).
That’s all investing is really — putting your money to work.
Coming Soon
- Article #2: Warren, What The Heck Is An Asset?
Disclaimer: This article is for your entertainment purposes only. It is not intended as financial advice. Always undertake your own due diligence and research.