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A short course of lectures
«Investments: An Introduction»

Derivative market instruments: futures and optionsExchange traded fundsValuation of income-producing propertyNurture your health and family lifeRisk and return: the recordInvestment principlesRead up on the undisputed "Out of Africa" theoryBe quietly competitiveRisk-free rateElement 3: financial instrumentsLife-cycle of happinessRelationship between risk and returnValuation of fixed-interest securitiesBehavioural finance theoryUndertake a lifelong love affair with macroeconomics and the political environmentDo not lend money to anyoneDo not bow to peer pressureThe instruments (ultimate investments) of the ultimate borrowersPrimary and secondary marketsShare marketElement 5: money creationThe life-cycle and investingMoney market instrumentsUnderspendWhat are risk and return?Phase 1: 0-20Promote a rock-solid emotional backboneTop-down investing is wiseLessons from the theories and maxims OTC and exchange-driven marketsInvestment theories and maxims Be cognizant of behavioural finance (the psychology of the market)Element 1: lenders and borrowersUndertake SKI holidaysLearning outcomesValuation of participation interestsMeasuring risk and returnPrivate equity fundsPhase 3: maturity to seniority (40-60)Appreciate the life-cycle consumption theoryForeign exchange marketFour phases of the life-cyclePreoperational stage (2-7 years)Spot and derivative marketsDrive home the philosophy that wealth has two legs: monetary and non-monetaryAsset classesShare market instrumentsValuation of futures and optionsBond market instrumentsProperty unit trustsOther rules which apply throughout or during part of your life-cycleElement 2: financial intermediariesUnderstand macroeconomics and mean reversionModern portfolio theoryPhase 4: seniority to exodus (60-80+) Learning outcomesLearning outcomesInvest assets wiselyThere is no simple formula to make you wealthyEfficient market hypothesisPursue happinessInvestment vehiclesNurture and exploit your personal brandProperty Of the real investments, property is the most significant investment for the retail investor (individual)Phase 1: newborn to adulthood (0-20) CommoditiesForeign investmentsContinue to invest assets wiselyDiversification is criticalNever fall in love with an investmentFinance lifestyle assets with excess fundsChoose your life partner with careThe instruments of the financial intermediariesAppreciate the significance of the risk-free rateRead up on the cognitive development stages of offspringDebt marketPhase 2: adulthood to maturity (20-40) Other real investmentsInvestment environmentThe financial systemPortfolio managementPhase 2: 20-40Do not become dependent on the largesse of your spouseSix elements of the financial systemResist the Indiana Jones temptation to make a comebackSensorimotor stage (0-2 years)Be aware of the principal-agent dilemmaElement 6: price discoveryReal investmentsPhase 3: 40-60Time value of moneyRetirement fundsHedge fundsLearning outcomesProgramme the child's mind to be an inquiring oneElement 4: financial marketsFormal operational stage (11-15+ years)Base investment decisions on their FVPConcrete operational stage (7-11 years)Choose your career with careDefinition and objective of investmentValuation of other real assetsInsure your life onlyValuation of sharesAggressively repay debtProvide sound education inside and outside institutions of learningPhase 4: 60-80+Allied participants in the financial systemUndertake one career and become accomplished at itNurture relationships in business with like-minded people and avoid negatively-focused peopleUndertake lifelong continuing educationCash out and separate business risk from personal assetsPromote an ethos of sound money managementHave no regrets upon exodusSecurities unit trustsLong-term insurersChoose this day carefully and prepare yourself emotionallyTake on debt, but with much thoughtAppreciate market liquidityDo not be led by technical analysisFundamental analysis (aka firm foundation theory) (security valuation)Capital asset pricing modelRisk and returnBe kind to people with humble stations (positions) in lifeValuation of commoditiesAsset allocation over the life-cycleInvestment instrumentsLeave investing to the professionals
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