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1.5.2 The investment plan

Just as when starting a business, when starting with investing you should make a plan. The plan should consist of which you want to use. But also don’t limit yourself by only investing in domestic stocks, nowadays it is really simple to invest all over the world.

As a basic rule your age should be the percentage of fixed income in the portfolio.

You can decide to invest in the stock market but you can also decide to speculate on the stock market. Investing can be done in many things and you can hold on to your investment for months or even many years. If you are a speculator you might not want to take the time to get to know a business intimately. You are looking at a horizon of a few days/weeks.

C2M22

An investment plan is like a business plan when starting a new business, a portfolio consists in general in a generic part and a more specific part.

All the different elements in the portfolio can be summarized in picture one, in the other chapter we will deep-dive in those specific instruments. Summarize you have passive investments and more active investments.