You have set goals, you have physically and mentally worked, you have been paid, you have saved and you must now invest. Numerous errors await, a devoted union worker is accustomed to seeing business as the enemy, hence questions where to invest. Fair Business is the only investment tool to beat inflation. As prices (Cost of Living) rise the returns on investment must also increase for you to pay your bills. Selling for a profit, or by any other name you feel comfortable with, is the system that is used to generate those returns on investment. Your pension plan, your bank savings and your (Professionally Managed) investments all grow because of business activities.Having no other choice but to invest in business, the next decision is in which company operating in which sector and through what type of investment instrument. This is about knowing yourself and how deep you are willing to go into researching companies, their management, their competitors, their operational environment and then keeping up-to-date with all the news, about and that can affect, each company’s fortunes. Your investment portfolio should include several companies of various capital sizes, operating in different sectors and even in different countries to minimize risk.
Further to this, there are two main ways to invest in a company, you can buy shares or you can buy bonds. On purchasing shares in a company your thinking must now be that you are a part owner of this company with certain rights and privileges that can affect your expected returns if ignored. Your voting rights for example at annual general meetings or at specially called meetings are for you to protect your investment. If you buy bonds you are lending this company your money under detailed terms and conditions that address interest payments for and at a fixed time period which limits and lessens the risk when compared to owning shares.
You are a (Shareholder) part owner of many companies that operate across many sectors and countries and you are entitled to receive dividend payments from these companies. You (Bondholder) have also lent companies and governments money and you are to receive interest income payments. You must constantly and continually monitor each and every development that can affect your returns on investment (dividend and interest income payments) which is more than a full time job. By investing in mixed and diversified mutual funds you are buying expertise.
Professionals assigned to research and monitor sectors and countries to guide investment and others to examine particular companies in infinite detail. Then to collect returns on investment and distribution to Fundholders, after subtracting their management fees.
Rationale
T.A.J & Associates Company Limited uses this occasion to comment on topics that have been covered, both academically and by the mainstream media, to add its opinion and point out investment opportunity, not to invoke any social action.
