Getting Started In Investment

We are pleased to be able to present a page written by Stuart Langridge from TheStuartLangridgeLetter.com . Stuart has been an International Financial Planning and Investment Consultant to expatriates for a number of years and a Personal Finance Columnist too.

Hello everyone,

My name is Stuart Langridge and I am pleased to say that I have been asked to pen a few words about investment for this website. My own personal specialty is actually the subject of this website - investment and making it understandable to beginners .

This might not sound like much of a skill, but the majority of the finance world seems to thrive on making investment matters as complicated as is humanly possible. As the 2008 credit crunch and bear market has now shown us, there seems to be an ability in financial circles to make things too complex for the professionals as well as the amateurs!

There can be little doubt about it, a beginner to the world of investment faces some daunting decisions. Firstly, he or she needs to understand his or her own personality. Being able to judge and accurately understand how they will react to possibly stressful situations is vital.

Some people are born to trade and hustle in the stock markets of the world. Others of us (almost all of us in fact) are less suited to this existence and need to take a longer term perspective. Perhaps we lack the time, training or nerve to make such regular decisions.

Others still do not plan to become investment experts. For people with limited financial interest, the stock market and many other forms of investment should really be a place in which money is parked in a collective investment fund (unit trust or mutual fund).

Once an indivdual has made these decisions, it is easier to choose an investment style and market. For example, do you like hard work? If you do, perhaps residential property is for you... Alteratively, perhaps you took an accountancy course some years ago and now feel ready to read annual statements.

Whatever your investment calling, be it hard assets or bonds, property or currencies, it is important to do regular background reading and general subject specific reading. Knowledge always has been and always will be the greatest reducer of investment risk .

It is also well worth reading some of the classics of the investment world. Books by Warren Buffett , Jim Slater, Ben Graham and others ought to be required reading before anyone is allowed to buy their first share!! That may sound harsh, but it really would be for the best...

I wish you well on your path to fame and fortune in the investment world. Just remember to do your own research and thinking before you buy anything and you will in time become a more proficient and successful manager of your own money.

Good luck!

Stuart

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