PART II: INVESTMENTS

In second part I’m going to specify only few ways of earning money by making investments – most known and common followed.

Real estates

Personally I think that investment in real estates it’s the most safety way to earn a lot of money in average time. Starting from real estates websites – founders of this kind of portals earn good money every month just by sitting and administrating the site. Another way is to start a selling company. Such company sells apartments i.e. from investors, renting offices, consulting and gets high commissions. If you’re buying an apartment in good price, location you can be more than sure that you’ll not going to lose on this business as well. Some may think that it depends on how market will react but still even if price of your 2-3 years apartment is almost equal as it was in time when you bought it you can always rent your apartment without special effort and start to sale when price is better and it will surely be. Other way to earn good money is just to buy a plot, build a house and then sell it with profit. This option unfortunately require more funds to invest than purchase of an apartment but delivers more satisfaction and money as well after the whole process is finished. For those of you who have an access to really big funds the best way to multiply them is to build a residential building for many people. This option doesn’t guarantee that you’ll be rich like co-founder of Microsoft (D. Trump is ‘almost’ there) but if everything is well planned, complex process of construction and management will end you can spend rest of your life on Bora Bora island (if you don’t succeed and stay with debts this is also a good idea to go there J).

Stocks

Are more profitable than bank deposits or bonds but on the other side more risky. Most efficient way to invest in stocks and win (earn something) is to achieve experience, knowledge about situation on all markets that can be concerned and stay fearless no matter what is happening on stock market. Personally I don’t believe that this is only a matter of luck. The worst mistakes that usually people do is when value of stock reaches level of purchase price and then when going down frightened investors are selling all stocks of some company and loose in the end; they should buy when price is really low and wait until it’s value increases. Other good solution is to buy stocks of a company that has temporary problems and value of it’s stocks is occasional. But on the other hand temporary problems can be transformed into bankruptcy and this is the worst situation for a stock holder. A lot of time is needed to earn on exchange rate especially on stock market. The most known person, icon of stock markets is Warren Buffet – 2^nd richest person in the world. Below I attached interview with him. It’s very interesting believe me.

Currencies

This is a very risky way of investing because we’re not sure if some state intends to have strong or weak currency. Strengthening or weakening of currency affects state economy positively and negatively as well. This causes situation in which it is hard to estimate right value of one’s currency. Other risk is appearing of currency speculation which is high probable and caused by multinational institutions that may have an influence on currency rate.

Bonds

Most safety way of investing for any amount of money because bonds are covered/secured by the Treasury. You can buy bonds directly from the Treasury or on stock exchange market. Interest rate is generally higher than on bank deposits (about 7%) but you have to ‘freeze’ your money on a long term to get planned profit. If you withdraw bonds before expiry period you’ll loose some percentages and get a same result as you would make a bank deposit.

Questions:

■ Have you try to invest in any way presented by me?

■ How you invests money or where you plan to invest?

■ Do you like to risk or maybe you’re more careful when investing money?

■ Extra: What is the most profitable and sure investment? Hint: I wrote it nowhere…

Sources:

■ www.youtube.com