|Here’s another quote, from author and economist Benjamin Graham: “The individual investor should act consistently as an investor and not as a speculator.” Graham recognized that an investor looks for good investments that are reasonably priced, while a speculator “bets” on risky vehicles.
While quotations may offer some valuable guidance, you must ultimately create investment strategies based on your individual situation.
So, pay attention to words of wisdom - but let your own voice be your true guide.
Take Steps to Avoid Investment Scams
It’s unfortunate, but true: Unscrupulous people and companies do try to take advantage of unsuspecting investors. How can you defend yourself?
For starters, follow these suggestions: First, investigate a company that wants you to invest in it. Call your state securities regulator to see whether the company, or whoever is promoting the offer, has a history of complaints or frauds.
Also, be extremely skeptical about “guarantees.” When a promoter guarantees you a high rate of return, you can be assured there’s something amiss. In the investment world, high returns are typically only achieved by higher-risk vehicles - and they don’t offer guarantees.
There is no shortcut to investment success. Evaluate each investment opportunity based on your individual goals and risk tolerance.
This suggested approach to investing may not provide you with “hot” opportunities - but it certainly won’t burn you, either.
Contact Wendell at Edward Jones www.edwardjones.com.