Category: The Very Basics Of Investing

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How Warren Buffett Makes So Much Money

Warren Buffet is one of the richest people on Earth (currently the 3rd) with his net worth of $73 billion. He has made a tremendous amount of money in his life. How much do you earn per year? How much do you work for your income? Do you like what you do? If you are not happy with your job and income, here is a simple way you can change this in your favor. I will show you how the greatest investor of our time makes billions of dollars every single year. After you read the following lines, you will...

What Is Dow Jones? The Basics Of Stock Market Indexes For Dummies

Dow Jones Industrial Average (DJIA) is one of the most important stock market indexes today, not only in North America but in the whole world. It’s a reliable indicator of stock market sentiment and it is used by lots of analysts, traders, companies, and investors from all around the globe every single day, for all kinds of purposes. That’s why it’s really important for everyone interested in the stock market to understand what The Dow Jones Index actually is and how it works. Below is a very simple explanation of this: What Is a Stock Market Index In the beginning,...

investing tips

7 Basic Tips To Help You Be A Better Investor

You don’t need to be a genius, if you want to be a good investor. Actually, investing is boring and dummy thing and everyone can do it! You need to stick some rules and have some discipline, but it’s not rocket science at all. Here are some basic tips, that can significantly improve the performance of your portfolio. They are so simple and trivial, that many people would ignore them thinking they are too obvious to be true. But they are and can have some substantial effect on your returns. Don’t forget about fees! Investors often don’t pay much attention...

Gold ETFs invest only in gold and follow the price of the precious metal.

What Is An ETF And How To Invest In It (Infographic)

ETFs are really popular financial instrument nowadays. But what is an ETF and what’s the big deal investing in such? ETF is an abbreviation from Exchange Traded Funds and actually is an investment company, that collects money by selling shares to the broad public and invests the collected money in different assets like shares of other public companies, commodities, and all other kinds of assets. This way people, who have shares in such a fund get their money managed professionally and without their participation. They are just like mutual funds, except that they are traded on a regulated stock exchanges,...

What Is A Stock Market Crash? When Do Market Crashes Happen And How To Predict Them?

A stock market crash is a sharp and unexpected decline of stock market prices for a very short period of time, usually accompanied by the decline of many other assets’ prices. As a result, the most of the investors and speculators in the market realize significant capital losses. The losses themselves cause panic and fear among market participants, this deepens the contraction and causes more losses, they cause more panic, etc. This way a stock market crash is usually a self-reinforcing process that is totally uncontrollable. Stock market crashes are social events caused by both, economic conditions and human behavior....

investing tips

Investment Growth Calculator

You can use this simple and at the same time powerful investment calculator to see the magic of compounding, as Albert Einstein once said, it’s the 8th miracle of the world. Why is it called this way? If you want to enrich a bit your knowledge on the matter, you can check our cool topic about what compound interest is and how exactly it works. Then come back here to see it in action. The Investment Calculator Using this calculator you can calculate the return on your investment over a specified period of time, at a certain interest rate. Imagine...

This is the formula of compounding interest.

Compound Interest Formula Basics For Dummies

Compound interest is the foundation of investing. It’s even more important, the whole financial system in our world is based on compound interest. It’s everywhere, and this is why it’s so important to understand exactly what compounding is. Here I will talk about the most commonly used compounding interest formulas in our everyday life and this way I will show you how the 8th miracle of the world works. Everybody knows what interest is. If you have $100 and put it in a bank account for a year at 5%, at the end of the year you get: 5% x...

The basics of dividend investing.

How To Find The Best Dividend Stocks – 5 Key Things You Must Know

Investing in high dividend paying stocks is a cool way to put your money into work. Why? Because it has many advantages than its alternatives like bond investing. If you are interested in all of the pros and cons of dividend investing, you can check our article on the matter here, in this post we are going to explain some key and very basic things one should know about dividend paying stocks. If you are completely new in this field, you’d better check out our reading about the very basics of dividends. The current article is about the basic terms...

An example of dividend announcement and dividend dates of Royal Dutch Shell. There are 2 dividend dates - one for the two types of shares (a and B) the company has. The other dates are the same for A and B shares.

When Are Dividends Payed – Declaration, Record, Ex-dividend, And Payment Date

In this article, I will explain in simple words the most important dividend dates. If you still don’t know what a dividend is, I strongly recommend to read this article first… Everybody who invests in dividend paying stock must know what each date means, and how it is used by investors. There are 4 important dates: declaration date, date of record, ex-dividend date, payment date. Here are some details about each and if you still don’t understand them, you can check out the example below. What These Dates Actually Mean Declaration date – this is when the board of directors...

This is how your investment grows when compounding...

The Real Secret For Successful Investments – You Will Be Amazed

There are hundreds of investment funds out there and each of them is trying to actually outperform the market. Many of them have fancy words in their names as growth, low risk, high yield, etc. But the truth is that most of them are … gamblers. Yes, they are gambling with other people’s money and at the same time, they are charging decent fees to do this. According to a study tracking the performance of 355 investment funds for 35 years (from 1970 – 2005), just 7 of them managed to beat the market with more than 2%. 9 out of...