This is the sixth post in a series about investing I started on Aug 26th.  The next process to be covered is step 2 – Managing the Investment; but before I launch into it:

Welcome and constructive feedback

I received some great constructive feedback yesterday.  It was about my most important point.  The comments make me think I buried this key principle too deep.  (Thanks to the author of the feedback, you know who you are)

Major Clarification

People can lose sight of the fact a lot investing options exist.  These options are meant to accommodate the different goals and the choice can be overwhelming.

For example you may feel strongly we are on the cusp of a big recession and want to hold cash or gold or something like that.  This approach isn’t wrong if it aligns with your beliefs, and goal (i,e,  to stay liquid)

If that is your goal is more risk averse than profit my investment basics can still apply but what you invest in and the return on investment must be something you are fully comfortable with.

Your decisions and more importantly understanding your decisions and being sure that they indeed line up with your goals is really the point of step 1

I outlined a framework to help you achieve this, but I was not explicit enough as to the main factor – understand what you are doing, be comfortable with it and don’t let others make you decisions (advise you is good, decide for you is not)