According to Swedbank survey, in Lithuania, 60 percent of the country’s population has little or no knowledge about investing.
Losses are inevitable for beginning investors. But To lower the cost of mistakes, PRIMUS Managing Partner (International Business), Attorney at Law Robert Juodka shares his TOP5 investment rules:
- invest only in what you understand (i.e., in such markets, shares, bonds, funds, instruments that you understand and can explain to others: a) why you did it, and b) what are the main sources of the investment goal’s value and income generation.
- invest only in value, i.e., what has/generates real long-term value and is always needed (for example, such sectors as food, weapons, energy, real estate, raw materials, pharmaceuticals).
- enter (and exit) a specific position not once, but in stages (several times or over a period of time). This will ensure a better ‘average’ price.
- invest regularly, i.e., periodically, for example, once a month, both in good and bad times. This way you will get a good ‘average’ price.
- Dividend investing and compound interest rule (in the long run). Cash is not trash, but cash flow is king
For those who did not manade to attend the personal finance conference “Mano Investicija 2022” live, the discussion “The most expensive portfolio management mistakes” together with Robert Juodka can be found at DELFI.lt media library (in Lithuanian).