What is the Best Investment?
The answer to “what is the best investment?” lies with each individual investor. The best investment for a person who revels in taking risk might be buying near term expiring options, with a slim chance of ending up “in the money”. Taken to the other extreme, an elderly retired couple might consider their mutual fund or I.R.A. their “best investment”.
The best investments for some people don’t always work for others depending on the level of risk.
One type of investment that has benefited many people has been subscribing to an Initial Public Offering or IPO of a company’s stock. An IPO is generally done for a company that has already been in business for some time and has proven to the underwriters of the stock —the investment banks which broker the IPO to the public — that the company has a product, service or idea which will make investors money.
An IPO allows investors to get in on the ground level before a stock is publicly traded. Nevertheless, IPOs can be extremely risky depending on the company, and may not be the best investment for everyone. The best investments can vary considerably and may not end up being the “best” investment.
Many people invested heavily in the dot com start ups and real estate, thinking they were the best investment, and, at the time for many people who were prudent enough to cash in before they collapsed, they were. Finding the best investment requires considerable research and a good idea of what you are looking for as far as risk, return and how comfortable you feel towards the investment.
By InvestorGuide Staff
Posted in ...Investing