Successful investing is about managing risk, not avoiding it
Investment ratios are used by accountants, CFOs, current and future investors and among others to determine a company’s financial performance. Ratios show the story behind the numbers and can be used to pinpoint your new investment, but they are also used by a company’s management team to establish the current financial status of the firm. When used for the latter purpose, a company will act upon the results found in most cases.
In today’s world, wanting to invest is increasing in popularity, especially with the younger generations. Personally I am very passionate about investing and I do not believe in the old narrative of putting your money in a savings account. Nowadays a savings account will get you less than 0.5% interest a year and there are even banks that stopped paying interest altogether. In this article I want to share a few basic, but very key reminders for those that consider investing, but are new to the concept of it.