Muddled minds harm investors so we need awareness of the psychological effects of isolation and confused thinking. This discussion continues the 10 Paralyzing Mental Blocks of Investors introduced in the last post. Isolation and confusion can quickly produce confused thinking and mentally block an investor from making the right decisions. Part 6 of the White Top View Series, Mind Game discussing emotions and psychological aspects of investing.
Optimism and unrealistic minds of investors discusses the need for a realistic, knowledgeable outlook. Personal finance and investing basics includes knowing that unfounded optimism and unrealistic attitudes can produce huge losses. This post continues the White Top View Series, Mind Game discussing emotions and psychological aspects of investing.
The attached stubborn and helpless investor continues the discussion of the 10 Paralyzing Mental Blocks of Investors introduced in the last post. This post discusses the challenges of attachment, stubbornness and helplessness that can mentally block an investor. Part 4 of the White Top View Series, Mind Game discussing emotions and psychological aspects of investing.
Where did the money go? 1st look at cash flow, Part 4 of 4. The cash flow statement reveals vital information. It tracks the cash received as well as the cash consumed by the company. Knowing the comings and going of cash helps investors understand the pulse of corporate finances. A look at cash flow in our introductory discussion of financial statements for people new to investing.
Getting to the bottom line on financial statements, Getting to the bottom line on income statements, part 3 of the 4 part White Top View series discussing basic financial statement information for novice investors. Links to the four parts of the White Top View Series, Basic Numbers are at the end of this post. The income statement reports how much revenue came in during the reporting period. On an annual report that period is a year but for the quarterly reports the numbers relate to the past three months.
balance sheet numbers balance part 2 of the 4 part White Top View Series, Basic Numbers introducing financial statements for people new to investing. Balance Sheets show me the money! The balance sheet also gets called a Statement of Financial Position. This is the report for anyone that has shouted “show me the money”! The balance sheet lists what is owned, what is owed and the owners share or equity. The list of stuff owned always begins with cash and other liquid assets grouped as Current Assets. Current assets are those that are or could be turned into cash within one year.
The keys to a treasure trove of investing information is understanding financial statement basics. With that basic skill, investors can ask companies to, “show me the numbers!” Financial statement basics help those new to investing get comfortable looking at and using financial statements. This is Part 1 of the White Top View Series, Basic Number Reading that provides an introduction to reading financial statements.
Learning to invest well can be fun, interesting and manageable. It just can’t be fast. It does take time. An hour a week can be used to learn but an hour a day can be put to very good, interesting and profitable use to learn, select and manage a portfolio well.
More time in equals more money out! Wisdom of the saying, you get out what you put in, applies to investing. This Part 2 of 3 discusses committing an hour a week to learning management of investments and to understanding markets, investing and your portfolio.
Time to invest or time for an advisor? Is your financial future and security worth some time? Too little time and you have no choice but to use an advisor. If your future is important enough, spending time well can significantly improve investment returns. But it takes time and effort. This White Top View blog post discusses personal finance and investing basic topics.