Reflection About Investment

REFLECTION PAPER IN INVESTMENTS AND INVESTMENT PORTFOLIO

As they say, "Money isn't everything, but happiness alone can't keep out the rain." It is often said that money is not the most important thing in the world. Despite of this, we still need to understand the true value of money. Money, in and of itself, is not very spectacular. What money can do for you is what is really important. Money gives you freedom and choices.

What I learned from my investment classes is that investing is important. If you keep your money in your back pocket instead of investing it, your money doesn't work for you and you will never have more money than what you save. By investing your money, you are getting your money to generate more money by earning interest

If you aren’t comfortable buying individual stocks, low-cost index exchange-traded funds or mutual funds are fine, too. Whatever method you choose, you must be patient and let time do its work.

With the wealth of information available – in books, newspapers and websites – anyone can learn to invest. Buying and holding a portfolio of conservative stocks or funds isn’t hard. What’s hard is tuning out all the distractions – market predictions, economic headlines and product pitches – that can throw an investor off course. If you can ignore the noise and stay invested through good times and bad, you will be amazed at the wealth you can build.

Another lesson I learned was that, it’s not necessary to take on a lot of risk in order to generate attractive returns. In life, we’re taught that success comes to those who work the hardest. With investing, it’s the opposite: the laziest people often reap the biggest rewards. If you are investing in a good company – if its earnings and dividends continue to rise year after year – there’s probably no reason to sell it. If you feel the need to do something, I’ve found that reinvesting dividends – either in the same company or a different one – is a great way to scratch the