If you’re looking at making business investments for the first time, or if you haven’t been as successful as you’d like with previous ones, how can you improve your prospects? Investing can seem like a very complicated process and it’s easy to get lost in a maze of jargon and numbers, but in fact, most of it is about common sense. In order to develop as an investor, the most important thing you’ll need to get right is your portfolio, and that means getting the right balance of stable and speculative investments.
As a rule, investments in large companies are more stable. Although you can probably think of a few big casualties of the crash of 2008, events like that are rare, and generally speaking, large companies don’t fall over. If the value of shares falls, you can wait it out before selling. At present, companies like Apple, QEP Resources and Transocean are a good bet because they’re making impressive investments in the future, showing clear vision and growth potential, but they also have a history of successful management and can maintain the confidence of other shareholders vital to long-term security.
All this might seem rather unfair on small companies, which don’t have the chance to attract investment based on reputation, but they have another kind of appeal: they offer much bigger returns on investment. Lower share prices means you can afford to buy bigger stakes, with proportionate rewards if the company does well. Naturally, because a significant proportion of small businesses fail, these investments are also riskier, but you can hedge your bets a bit by picking sectors that are on the up – biotech and energy being good examples at the moment. A portfolio balanced by large company shares or government backed bonds will reduce the overall risk.
Fortress Investment Group LLC, which you’ll see listed in the Linkedin profile of Peter Briger, is a company that has made a real success out of investment management. It has achieved this by working internationally and developing expertise across a wide range of sectors, helping it to predict patterns in the markets and identify the best individual investment options to suit its customers, as well as knowing when to buy and when to sell. It specializes in asset-based investment and can also help with corporate investment and acquisitions.
Getting Investment Right
Making good investment decisions is key to keeping your business dealings healthy, because it means that your money is always at work and always growing, instead of sitting in a bank account earning well below its potential in interest. In order to invest successfully, it’s important to develop a sound strategy that you can stick to and keep a clear head, ensuring that you can make rational decisions instead of being tempted by exciting high-risk options or holding onto stock for too long because you’ve grown attached. With good sense and the patience to wait for stocks to mature, there’s no reason why you shouldn’t prosper.