Published 22:58 IST, September 6th 2024
Ali Mustafa Al Shamari Investment doors are many but you have to insist
Ali Mustafa Al Shamari said The first step to successful investing is to define your goals and assess risks, either on your own or with the help of a financial
Businessman Ali Mustafa Al Shamari says that to achieve your investment ambitions, there are deliberate steps that you must follow to avoid loss and reap the targeted profits. Financial experts say that the most important thing is to preserve money, not to grow it. The point is that if you decide to invest and your financial assets are exposed to loss, it is better to preserve this money instead of investing it unconsciously.
Map Out Your Financial Goals Clearly
Before making any investment decision, sit down and take an honest look at your entire financial situation, especially if you have not developed a financial plan before. Ali Mustafa Al Shamari said The first step to successful investing is to define your goals and assess risks, either on your own or with the help of a financial professional. There is no guarantee that you will make money from your investments, but if you get the facts and information related to saving and investing and follow a smart plan, you will naturally be able to obtain financial security over the years and enjoy the benefits of managing and growing your money.
Assess Your Risk Tolerance
All investments involve some degree of risk, so if you are planning to buy securities—such as stocks, bonds, or mutual funds—it is important to understand before you invest that you could lose some or all of your money. Unlike deposits in banks that are insured by government agencies, money you invest in securities is usually uninsured, and you could lose your principal, which is the amount you invested, even if you buy your investments through a bank. The reward for risk is the potential for a higher return on investment. If you have a long-term financial goal, you are likely to make more money by carefully investing in riskier asset classes, such as stocks or bonds, rather than investing in lower-risk assets.
Invest in High-Quality Companies
Because of inflation and expenses, your money needs to grow over the long term. Making a profit depends largely on steady growth from investments, so investors should invest a certain amount in
stocks. Investing in high-quality companies can build investor confidence over the long term because the investor knows what he or she owns. Time has shown that a sound and sustainable investment approach can be centered around focusing on businesses that have a sustainable competitive advantage, strong management, and fair value for money.
Let Planning Help You Make Decisions
An effective investment strategy goes beyond what’s in your portfolio and the percentage return. In fact, most advisors don’t do comprehensive planning, which can cause them to miss out on opportunities to maximize and achieve investment efficiency. A comprehensive investment plan should include five key dimensions: retirement, income, investment size, taxes, and risk. For this
reason, it’s worth reviewing your investments on a regular basis to ensure that you’re taking
advantage of the income and investment opportunities that may be available to you.
Don’t Give In to Knee-Jerk Reactions
Ali Mustafa Al Shamari make this point the last advice as he seen , he said Stop following mainstream financial news programs and random Google searches, as they are designed to create fear in order to attract viewers and readers. If you listen to or read too much negative financial news, there’s a good chance you’ll end up making an unwise decision about your investments. Instead, let the curiosity that the media arouses lead you to seek out personal advice.
Updated 13:48 IST, September 17th 2024