Money Management Skills

(backadmin) #1
20

Lecture 3: Basic Investing—Keep It Simple


% Modern portfolio theory recognizes that there are two basic types
RIULVN7KH¿UVWW\SHLVWKHV\VWHPDWLFULVNWKDW\RXFDQ¶WJHWULG
RI7KHVHFRQGW\SHLVWKHNLQGRIULVNWKDWFRPHVIURPLQYHVWLQJ
LQDVLQJOHVWRFNLQVWHDGRILQYHVWLQJLQDEXQFKRIGLIIHUHQWVWRFNV
7KDW¶VFDOOHGXQV\VWHPDWLFULVN

% ,QGLYLGXDOVWRFNVFDUU\DORWRIXQV\VWHPDWLFULVNEHFDXVHDQ\WKLQJ


FDQKDSSHQWRWKHLUEXVLQHVVWKDWGRHVQ¶WDIIHFWWKHHFRQRP\DVD


ZKROH7KHW\SHRIXQV\VWHPDWLFULVNWKDWDIIHFWVHDFKFRPSDQ\LV


DOVRNQRZQDV¿UPVSHFL¿FULVN$QGDVDQLQYHVWRU\RXVKRXOGQ¶W


UHDOO\FDUHKRZPXFK¿UPVSHFL¿FULVNDFRPSDQ\KDV XQOHVVRI


FRXUVH\RXZRUNIRUWKDWFRPSDQ\ 7KDW¶VEHFDXVHLI\RXLQYHVWLQ


GR]HQVRUKXQGUHGVRIGLIIHUHQWFRPSDQLHVWKLV¿UPVSHFL¿FULVN


JRHVDZD\


6WRFNVDUHULVN\¿QDQFLDODVVHWVEXWWKH\DOVRKDYHWKHSRWHQWLDOWRPDNH\RXD
lot of money.

‹YDHHQPDL6WRFN7KLQNVWRFN
Free download pdf