Investing

Investing

Deciding what to invest in

Successful investment is all about information and assessing risk. Where does this information come from you may ask? The simple answer is that it comes from many sources. These include; newspapers, financial columns, online content, views expressed from experts, personal knowledge, personal contacts and many more.

Before embarking on an investment it is vital to assess the risk of that investment.  Assessing risk is one of the most difficult of all investment dilemmas.  As a bare minimum you have to assess the financial health of the organisation, its reputation in the marketplace, its future growth and development plans and, as much as you can, current and future events out with the organisation’s control which may impact on its performance.

Questions such as… ‘Is the share over priced?’ can be answered from brokers, newspapers and other sources previously mentioned. Your own judgement also comes into play when deciding what to invest in. Experienced investors will almost always base their decisions on the information and facts they gather but sometimes their gut feeling on a share will determine their ultimate decision.