Chapter 8

Investing in shares

You only have to do a very few things in your life so long as you don’t do too many things wrong.

Warren Buffett

Shares are easier to understand than you might think, and although they can seem a little scary to a first-time investor, the reality is that most of us have been investing in shares for years without even realising it. This is because, unless we have selected otherwise, it is more than likely that our superannuation is invested in some form of managed fund that is invested in shares (along with cash and property).

In the previous chapter we looked at how any money we deposit with the bank is then lent out to people and companies, so when we put our money in the bank, we are essentially becoming a ...

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