It Will Take Too Much Time

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It Will Take Too Much Time

Initializing and subsequently diversifying your portfolio should never take up an inordinate amount of your time. Even as you expand your portfolio and begin to include other financial instruments, a process known as diversification, the initial purchase of stock will be your decision. Should you decide to spend hours researching , you are perfectly free to do so. Or, you might ask a friend to give you advice. You decide to purchase the stock for whatever reason you consider important. Research is never required.

Plain English

A portfolio is a collective term for all your investments. It should consist of cash as well as different kinds of investments, such as stocks and bonds . Determining how much of each you want is a process known as diversification.


After purchasing the stock, even monitoring its performance is optional. Should you decide you want to know the stock's performance for the day, through the use of several methods described in this book, you will be able to uncover any information in a matter of seconds. But most important, you still control the amount of time you allot to monitoring your stock's performance. Monitoring your investments is also not required.

So the total time commitment is solely your decision. That doesn't mean you shouldn't take the time to learn anything. You obviously have some interest in the stock market, or you wouldn't want to invest in it. As with other areas that catch your attention, you should take some time to learn more and to become increasingly familiar with the market.

What inevitably happens is you start to become interested. Once you've learned how stocks work, you start to wonder how bonds work. In addition to stocks you already own, you begin to check the daily performance of stocks that you are considering purchasing. After learning the business of one company, you become interested in how the competition is being run. As your interest in finance expands, it is highly possible that you may find yourself putting more time into it. However, this is your choice. The reverse is also true: Should you have no interest in your investments or later lose interest, you are free to ignore the whole lot.

TIP

The fear that managing your portfolio will consume too much time is dismissed when new investors discover that research is available but not necessary and that they control the amount of time they want to devote to research.


As your holdings grow and expand, the amount of time you dedicate to learning about new investment vehicles and to monitoring your expanded portfolio will also grow, but only infinitesimally since the entire process requires only a few seconds in the first place. You could continue to invest in the vehicles with which you are already familiar and thereby further reduce additional time commitments. Or, you can begin to learn about alternative investments at your leisure.

Like any commitment you make, investing will take up some time, but how much depends on your decision. The truth, however, is that by the time you have so many stocks that maintaining them is actually causing you time problems, you should be rich enough to afford to pay people to do that for you.

The 30-Second Recap

  • Financial terminology should not be intimidating.

  • The basics of the stock market are not complicated.

  • Investment options exist for people of any income level.

  • The market is a safe stable place to put your money.

  • The stock market is not a game of chance.

  • The time required to manage your investments is minimal.

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Stock Market Investing 10 Minute Guide
Stock Market Investing 10 Minute Guide
ISBN: 0028636104
EAN: 2147483647
Year: 2000
Pages: 130
Authors: Alex Saenz

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