Investment Blog (Late)

Investment Blog(late)
During the course of this investments project, I learned that you should always aside so money in case you go bankrupt. Spending money wisely is key to success in the future.

Investment Blog (Late)

Over the couple of weeks I spent completing my project, I have learned a lot about investing and saving. Many of my friends have helped me over this period of time and I would like to mention them. I would like to give credit to Sylvia for helping me with the formula, Bryan Ly, and Jason Wu. This project has given me the motive to invest and save money. Before being assigned this project, I knew of investing but I did not have extensive knowledge on the actual concept. In my project, I had kind of a difficult time choosing a company, so I decided to choose Apple, whose rate of return is 19.2%. A lot of other companies I chose at first did not meet the required 6% total, which surprised me. I also decided to start by saving $300 each month. Another thing I learned in completed my project is the huge difference between savings and investment. Saving is for more short-term goals like having emergency money. Investing is in a way for long-term goals, like saving for your child’s college education. When you invest, the money you are investing is typically not gonna come as fast as it is in a savings account, but when you save, you have access to ready cash when you need it, but there is a limit to how much you can take out. In conclusion to my report, I would like to state that opening an investment account is the better way to go in most situations, and this report has changed my outlook on investment.

Investment Project Blog Post: What I learned

Since this project, I definitely know a lot more about investing than I did before. Before this project I knew that you could invest in both banks and company, but I didn't realize how much more beneficial it would be to invest in a company. I always thought that investing in a bank would be the better, smarter, and safer choice. After seeing the difference though, I can see how sometimes a little risk can go a long way. I understand how some people may be hesitant to take the risk of investing in a company, but I believe with enough research on a company, good judgement, and sheer luck, your investment will explode in an exponential growth. My experience from doing this project is that, having investment means a lot more than it looks. Basically learning all the terms and the best technique to financially increase your money, is hard work. When first starting this project I had a minor freak out, as I'm sure many other students did. I knew the general idea of investment but I didn't realize how complicated it sometimes was, finding a good company or bank and all that. It made me appreciate the adults in my life, who are doing all the bills and stuff, a whole lot more. The idea of investing in something is still bouncing around in my head, but I'm not quite sure I'm ready to deal with money just yet. I am sure, though, that from doing this project I will be a bit more prepared, for when the time does come, to start investing money.

What did you learn?

     While I was doing my project I learned that when you invest you should invest in a company that has a high Rate of Return, I also learned that Rate of Return is also known as ROR. While not all companies have a high ROR the ones that due can be a great help if you do invest. Yes it might be risky with the stock markets and what not but its better than just putting your money in a savings account.

Investing and Interest

        I have learned much from this Investment Project about investing your money. One of the biggest things that my project had taught me was that if you want to invest never invest in banks, as in my project I had chosen Chase Bank which had given a dividend of 0.06% at the time that I checked to see what it was and within the 10 years and annual saving of $2,500 dollars, I only gained about $67 dollars from Chase Bank. While on the other hand if I had taken the money and invested it into the company I choose which was the ProAssurance Corporation which offered a dividend rate of 31.8% at the time that I had checked on their dividend rate and had found that I made a roughly 80,000 more dollars if I were to have taken those 10 years of annual savings of $2,500 dollars and invested it into the ProAssurance Corporation and another important thing that I learned was that you shouldn't invest in a company just because they have a high dividend percentage as that is a very risky move due to how it is probable for that dividend percentage to decrease and cause you to lose money. This was the case for the company I had invested in as when I went to check on the dividend percentage it had decreased by 1 percent already and if I had chosen another company which had a smaller dividend percentage it would most likely have a lower chance for the dividend percentage to decrease and a higher chance for the dividend percentage to increase and for you to make more money. What do you guys think? Should people invest in high risk companies with big dividend percentages, or play it safe and invest in companies with smaller dividend percentages?

Before I Started This Project, And After

Throughout the whole time I was trying to complete this project, I've stumbled across so many complicated problems and I've also learned so many new things. First of all, I've learned that it not always so easy to find the information that you need. For example, I've had to find a new company, one after another because the rate of return percentage was lower than 6%. I had some help, from my friend Anh Lien; she told me about the website http://www.gurufocus.com/ which was completely fit for this project and was so helpful for me. However, it was not until after I found out the difference between the dividend yield and the rate of return that I moved any further in my project. I found out the hard way that the dividend yield, the one I kept looking at, was not the dividend, the rate of return that I was looking for. Instead of looking at the dividend yield, I was just to search the 'rate of return' of my company that that would've just been the end of that. I've had a lot of trouble, however, I'm relieved after completing this project! I got to experience and learn about something I would have known nothing about by the time I was an adult and in need  of money. Because of everything that I've learned from this project, I will continue to take my savings seriously and actually start thinking about and considering investing on a worthwhile company. With all that I've learned I'll actually look forward to learning more about investing on a wider scale when the time comes and I'll be prepared because I know what to expect because of this project.

Experience in Investing

When it comes to investing at a young age like ours, we usually think of college as a thing to start saving up for.  To be honest, investing doesn't come up to our minds at all when it comes to saving for college. It's just saving scraps of money you get from your allowance or a part time job. Maybe it's praying that your parents will pay a portion or all of it for you. Student loans are scary. Once in awhile, I hear a kid around our age on the news investing and getting huge amounts of money. In my mind, I'd be like, "Woah, that's cool. You do that, kid." It never occurred to me that I could do it myself. From this project, I realized how accessible investing is to people of all ages. My dad told me he started investing in his 20s to pay for his college. He didn't make much, but it was enough to not worry about student loans. Sure, it takes quite awhile to find a company that'd give you a high annual return rate, more or less, save money to invest into that company. Additionally, you have to do more math. All these numbers and charts strain your eyes and eat your soul away, but truth is that it's worth it. At the beginning, I had no clue what any of these business terms meant. I screamed to my friend, "WHAT'S A SHARE? WHAT'S A DIVIDEND? HOW DOES ONE EVEN?" It took me two hours just to find out what they all meant. After I had that all down, I started searching. It took me another 2 hours to find just the right one (I'm really picky). I started getting less and less picky as my patience diminished. "19%? Meh, that's good enough." And so I began calculating at the speed of lightning. The saddening truth, however, was that I only had a 143% increase over the next 10 years. My dad said it was good, especially in the business world. He even joked that I should go into the investing world as my career (maybe). If I were to do so, I would need to put more time into it. Investing isn't just some one day does the job thing. It takes weeks, even months, to find the right company to throw your money at and strategically get that money. I actually really enjoyed this project and would want to do it again.