“What's a good share for me to buy right now?”
I'm amazed over and over again by how naïve and trusting people are...
If I could have a cent for every person who'd asked me “What's a good share for me to buy right now?” I'd never have to work ever again.
It's quite concerning that some investors believe they'll be able to make quick and easy money by asking a total stranger what share to buy!
If you aren't prepared to make your own decision with your money, why on earth would you be prepared to let some total stranger make the decision for you?
Think about the actions of the young and in love. They find are blinded by emotion and rational thought disappears. The same with many investors, they are blinded by the promise of money and rush into investments that will cost them dearly in the long-term.
I don't want this to happen to you. That's why I want to show you how to check the validity on an investment opportunity yourself. So that you don't let emotion cloud your judgement.
How to avoid the costly investment ‘mistake’
If you’re unsure about a particular investment opportunity then spend some time researching it. There are a number of actions you can take to make sure you don’t fall for an investment you might later regret:
Find out more about the company. Check the address, the company registration and VAT numbers.
Find out if the company has physical offices – since the popularity of the Internet many fly-by-night operations create ‘virtual’ companies to lure you in.
Ask for proof of the investment claims and track record – most reputable companies will be able to provide some form of proof of their claims.
Find out how long the company has been in business. If it’s been around for five or more years there’s less likelihood of it disappearing.
Check its financial statements to see if it’s profitable or if it has truck loads of debt.
If, after taking some time to research the opportunity, you’re still not happy with it, then you may be better off walking away from the deal and looking for something else.
Remember, the team at FSPInvest is here to assist. If you need any investment questions answered, visit www.investorsclub.co.za
and we’ll give you all the answers you need.