Investing Requires Research

An understandable definition of investing is that investing is an action that redirects resources from today to a future date with the expectation that the investor will reap an increased value or benefit at some future time. Some examples that most people are familiar with include investing in property, such as a house or land, a business through buying stock in a company that you expect to grow and make profits, and financial instruments such as bonds.

The first step in making an investment is to analyze the risk and potential involved in whatever vehicle you are choosing to invest in, such as property, stocks, and bonds. What you desire is to have low risk and high profitability and gain over time, that is better than you may be able to get from a regular savings account. If you do not analyze the risk and potential, you are not investing, but simply gambling or speculating because not analyzing means that you may risk the loss of your principal sum that you invested.

If you buy a car, that is an asset, not an investment. It will depreciate in value, in most cases, over time. If you buy a house, that is an asset but also an investment because it should appreciate in value, in most cases, over time. By investing in stocks, after doing your research on the potentials for growth in value and profitability, you are hoping for gains over time. Bonds are more secure, and will pay a higher interest rate over regular savings, so they are considered investing also.

The most important concept of investing is that you want, at minimum, to not lose your initial investment. That is why research and analysis is very important, so you make an educated investment, and not a guess. Investing is one area where intuition is not a wise thing to depend upon. Solid research into the facts of the investment are needed. If a stock, you want to look at the company, their bottom line, personnel, equipment, pricing, earnings, marketing, audience, potential for growth, and the competition. If you neglect to do this, your initial investment is at great risk and you could lose your stake.

What you want is to make more money, get increased value out of your initial investment, for the future. Many investments are long-term investments. Over time, there can be good profitability with many investments. Still, even with the best research and most conscientious efforts to determine good investments, there are many other factors that can interfere with your projected profits.

The bottom line is this: if you cannot afford to lose your investment money, you should stick to things that are closer to guaranteed returns, such as regular savings or money market accounts. Low risk will preserve your initial investment and bring some modest earnings over time. Looking for dividends that can be reinvested are another way to increase your investing without risking your own capital. If you have a lot of time, you can go with higher risk items; if not, stick to low risk investing.

Heike Ziegler

HEIKE ZIEGLER – YOUR #1 MARKET MULTIPLIER & BRAND MAGNIFIER Heike Ziegler is Founder and CEO of HZH International Brandconsulting UG and CELEBRITY BRAND MOVEMENT a company of HZH INTERNATIONAL BRANDCONSULTING UG specializing in brand, market and business development of brands, retailers and technology service partners in the fashion & lifestyle industry. Heike´s goal is to help you achieve brand-performance and enter new markets faster and easier than you ever imagined. As a veteran fashion designer with an international background, Heike masters complex topics such as the organization of an Omni-channel platform from the ground up and the implementation of new technologies as a service. Future-oriented trading strategies are made possible through advanced automated marketing and the analysis of the difficulties of users (brands & retailers) with a focus on the development and expansion of their intensive B2B relationships. Heike Ziegler provides solutions to strengthen the business performance of hundreds of fashion brands and retailers across Europe, from support through dedicated service networks and data conversion from marketing to providing a complete retail platform for brands and retailers to bring about long-term results. HZH-IBC serves as a platform for e-commerce, web application services/professionals, and for the creation of automated online marketing for the development of Omni-channel e-commerce solutions and trade applications for brands and retailers in the fashion & lifestyle sector. To transform the HZH-IBC platform into a marketplace where fashion and lifestyle brands meet with the trade for the successful sale of products and the joint business development, existing co-operations are being expanded and new partnerships are being developed. If you have any questions about Heike Ziegler success strategies and services, please email hzh@internationalbrandconsulting.com or call +49-172-913-999-5 or skype heike.ziegler60.