May 2010
Beginner
248 pages
7h 31m
English
Content preview from Personal Investing: The Missing ManualBecome an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.
Chapter 9. Manage Your Portfolio
You invest because you want your money to work hard to help you reach your financial goals. Low-return, low-risk investments won’t grow your nest egg to where it needs to be. But high returns come with the risk of large losses. So, crafting a successful investment portfolio is a balancing act between return and risk.
“Don’t put all your eggs in one basket” is sage advice, whether you invest in stocks, bonds, real estate, or (especially) Fabergé eggs. If you dump all your dough into one investment, you could win big or you could lose it all. Sadly, regardless of how carefully you choose investments, you won’t pick a winner every time. The simple solution to earning a decent investment return without risking everything you’ve got is asset allocation, that is, investing in different types of investments (stocks, bonds, funds, and real estate, for example) in your portfolio at the same time. You can diversify your portfolio further by diversifying each type of investment within your portfolio. For example, in the stock portion of your portfolio, you might invest in firms of different sizes, industries, sectors, or geographic regions.
Of course, you have to build an investment portfolio before you can manage one, but the two tasks are similar. This chapter starts by giving you an overview of returns and risks for different types of investments. Then you’ll learn about asset allocation, investing portions of your portfolio in different investments to obtain ...
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I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.