Understanding Investing
#EpisodeTwo
Failing to understand the notion shared in episode one is already a recipe for failed investments...
A lot of budding investors are focused on the rapid growth of their money that they miss this vital part of the process...
That is what these investment platforms often exploit...
They offer very high ROI with alluring marketing communications and a corporate charm that is feigned...
This ROI is also promised within a very short time frame...
Whenever you see ROI that is high and within a short time, you need to double check...don't just get excited...it is a red flag!
Why is a venture able to give that much ROI...(this is a very rare case and mostly for one-off deals)
It could be possible for a 'combination' of reasons like:
- High yield business with high profit margin
- Limited number of investors to share the returns (these platforms accept a multitude of investors and there is never an end to their need for capital...even banks have a benchmark for public offers)
- Very low overhead costs
- New venture that is yet to be consolidated (and minimal competition)
- Etc
While I am not ruling out the possibility of high ROI totally, it's always a signal to pay closer attention and ask vital questions...
High ROI is what many people want to hear, so these platforms offer just that to get monies and within a couple of months, the system collapses because apart from those who embezzle funds outrightly, you cannot cheat the principles of economics and market dynamics...
And once the promoters of these platforms start seeing such huge monies, they don't want to stop. They start living large, buying properties, latest cars, etc.
The signs are there if we watch...
To be continued.
PS: Should Episode 3 drop today or tomorrow, YAY for today and NAY for tomorrow at the comment section.
#EpisodeTwo
Failing to understand the notion shared in episode one is already a recipe for failed investments...
A lot of budding investors are focused on the rapid growth of their money that they miss this vital part of the process...
That is what these investment platforms often exploit...
They offer very high ROI with alluring marketing communications and a corporate charm that is feigned...
This ROI is also promised within a very short time frame...
Whenever you see ROI that is high and within a short time, you need to double check...don't just get excited...it is a red flag!
Why is a venture able to give that much ROI...(this is a very rare case and mostly for one-off deals)
It could be possible for a 'combination' of reasons like:
- High yield business with high profit margin
- Limited number of investors to share the returns (these platforms accept a multitude of investors and there is never an end to their need for capital...even banks have a benchmark for public offers)
- Very low overhead costs
- New venture that is yet to be consolidated (and minimal competition)
- Etc
While I am not ruling out the possibility of high ROI totally, it's always a signal to pay closer attention and ask vital questions...
High ROI is what many people want to hear, so these platforms offer just that to get monies and within a couple of months, the system collapses because apart from those who embezzle funds outrightly, you cannot cheat the principles of economics and market dynamics...
And once the promoters of these platforms start seeing such huge monies, they don't want to stop. They start living large, buying properties, latest cars, etc.
The signs are there if we watch...
To be continued.
PS: Should Episode 3 drop today or tomorrow, YAY for today and NAY for tomorrow at the comment section.
Understanding Investing 2
#EpisodeTwo
Failing to understand the notion shared in episode one is already a recipe for failed investments...
A lot of budding investors are focused on the rapid growth of their money that they miss this vital part of the process...
That is what these investment platforms often exploit...
They offer very high ROI with alluring marketing communications and a corporate charm that is feigned...
This ROI is also promised within a very short time frame...
Whenever you see ROI that is high and within a short time, you need to double check...don't just get excited...it is a red flag!
Why is a venture able to give that much ROI...(this is a very rare case and mostly for one-off deals)
It could be possible for a 'combination' of reasons like:
- High yield business with a high-profit margin
- Limited number of investors to share the returns (these platforms accept a multitude of investors and there is never an end to their need for capital...even banks have a benchmark for public offers)
- Very low overhead costs
- New venture that is yet to be consolidated (and minimal competition)
- Etc
While the possibility of high ROI is not totally ruled out, it's always a signal to pay closer attention and ask vital questions...
High ROI is what many people want to hear, so these platforms offer just that to get monies and within a couple of months, the system collapses because apart from those who embezzle funds outrightly, you cannot cheat the principles of economics and market dynamics...
And once the promoters of these platforms start seeing such huge monies, they don't want to stop. They start living large, buying properties, latest cars, etc.
The signs are there if we watch...
To be continued.
PS: Should Episode 3 drop today or tomorrow,
YAY for today and NAY for tomorrow in the comment section.
#EpisodeTwo
Failing to understand the notion shared in episode one is already a recipe for failed investments...
A lot of budding investors are focused on the rapid growth of their money that they miss this vital part of the process...
That is what these investment platforms often exploit...
They offer very high ROI with alluring marketing communications and a corporate charm that is feigned...
This ROI is also promised within a very short time frame...
Whenever you see ROI that is high and within a short time, you need to double check...don't just get excited...it is a red flag!
Why is a venture able to give that much ROI...(this is a very rare case and mostly for one-off deals)
It could be possible for a 'combination' of reasons like:
- High yield business with a high-profit margin
- Limited number of investors to share the returns (these platforms accept a multitude of investors and there is never an end to their need for capital...even banks have a benchmark for public offers)
- Very low overhead costs
- New venture that is yet to be consolidated (and minimal competition)
- Etc
While the possibility of high ROI is not totally ruled out, it's always a signal to pay closer attention and ask vital questions...
High ROI is what many people want to hear, so these platforms offer just that to get monies and within a couple of months, the system collapses because apart from those who embezzle funds outrightly, you cannot cheat the principles of economics and market dynamics...
And once the promoters of these platforms start seeing such huge monies, they don't want to stop. They start living large, buying properties, latest cars, etc.
The signs are there if we watch...
To be continued.
PS: Should Episode 3 drop today or tomorrow,
YAY for today and NAY for tomorrow in the comment section.