Investing Basics: A Beginner's Guide

Investing Basics

Investing is the act of allocating resources, usually money, in order to generate income or profit. Understanding the basics of investing is crucial for anyone looking to build wealth over time. This guide will cover essential concepts and strategies that every beginner should know.

Types of Investments

There are various types of investments, including stocks, bonds, real estate, and mutual funds. Each type has its own risk and return profile, and it's important to understand these differences before making investment decisions.

“The stock market is filled with individuals who know the price of everything, but the value of nothing.” - Philip Fisher

Risk and Return

Investing always involves risk. Generally, the higher the potential return, the higher the risk. It's essential to assess your risk tolerance and investment goals before diving into the market.