Investing for dummies 101

As this is my first article for APFT it's probably worth starting out with some basics for investing. My apologies up-front if you are already an investment guru, in which case you may as well skip on to something in this magazine which is much more interesting. If you aren't such an expert, then read on. You never know, this may be the most important series of articles you have ever read.

Here are a couple of rules of investing that some people (including me) believe in;
Start saving and investing as early as you can.
Even if you didn't hear (or follow) the first point 10 or 50 years ago, it's never too late!
There is no such thing as a sure bet, the golden rule is the higher the potential return, the greater the risk. Equally if you don't take any risk, your return will be lucky to beat inflation. Betting on a horse race or the stock market isn't investing, it's gambling.

Serious investing is about long term, sustainable, returns.

Understand your own personality when it comes to investing. No point dying rich of a heart attack because you made a fortune but you can't sleep at night! Even top level sportsmen and women use coaches that help them rise to the next level. Likewise, even shrewd investors should seek professional advice when reviewing their portfolios and seeking new investment opportunities.

They say the most important thing when buying property is location, location, location. The most important thing in investing is diversification, diversification, diversification (i.e. don't put all you eggs in one basket)

There are probably a hundred other key points, but these are the key ones that spring to mind for now. In our next article we will start to get down to a lot more detail about investing. We will explore the importance of undertaking your own personal risk profiling exercise (the one that helps you sleep at night while you make money, rather than having sleepless nights worrying if you'll lose money!)

Till the next issue, happy investing