This Chinese proverb fits perfectly at the beginning of the year, as you make resolutions for the new year that you put off last year, and perhaps even the year before. Tackle, finally realize and do – now and not later is the motto.
In the context of investing, this basically means that if you haven’t started investing in the past, the best time to act is now if you want success and growth in the future.
Many of us have not yet started investing the money we have put aside and are unsure whether it is the right time to invest. As a result, they have probably missed out on many profits. In fact, no one really knows when the best time to invest is. If you are unsure, it may be advisable to start with a smaller amount and increase it regularly over time. This approach also allows you to benefit from the so-called “cost-average effect”*. The key, however, is to get started.
Once you have made the decision to invest, you are often faced with the next hurdle: What do you want to invest in? Even for professional investors, finding the right stocks is a major challenge year after year. John C. Bogle, founder of the Vanguard Group (a US financial services provider and one of the largest providers of various index funds) once said: “Don’t look for a needle in a haystack; just buy the haystack.” For investors, this means, for example, not buying the individual stock of a company, but a stock index. This is because the performance of a few large companies (needles) usually influences the entire stock market, and it is therefore important to invest in these “needles”. These companies can be bought easily and cheaply via index funds and ETFs.
The large number of these index funds and ETFs should not again deter you from investing. But now may be the time to contact your bank advisor and discuss your risk, preferences, and investment expectations with them.
BERGOS has a cost-attractive investment solution with the appropriate name “START”. Perhaps it is exactly the haystack that appeals and fits?
And who wouldn’t want to rest under a beautiful, large, shady tree and enjoy life?
“The girl with a watering can” 2013, by Natalia Rak. Poland’s most popular and most beautiful mural can be found in Białystok/Bjelostock and is a protected contemporary cultural asset.
*Note:
Cost-average effect: If you regularly buy securities with a fixed amount, you buy more securities when the price of the security is low than when the price is high. A mathematical consequence of this procedure is that the average purchase price per security generally corresponds to the harmonic mean of all purchase prices.