Investing Demystified

The dictionary definition of, INVESTING is “to commit money or capital in order to gain a financial return”. However, if you consider the definition of GAMBLING, “to take a risk in the hope of gaining an advantage or a benefit” they end up sounding pretty much the same.

The main difference in our opinion is knowledge and education. If you place money into an investment, with the full knowledge of risks and rewards, then you are investing. If on the other hand you place money into an investment but have absolutely no idea of the risks associated with the investment or how the returns may be achieved, then you are gambling.

The Landau Securities Difference

Many people go their entire lives never knowing or learning HOW to invest for fear of loss or looking foolish. Always remember that a wise person learns from other peoples mistakes while a fool will learn form their own. When it comes to affairs of money, we can’t afford to learn from our mistakes.

The fact is whether we like it or not, money plays an enormous role in our lives. It can affect our relationships, our self-confidence, the way we live, raise our children, limit or enhance our choices and even play a part in the comfort of our very existence.

Money is so important that we trade our precious time just so at the end of the week we can have money. That’s right we go off to work in many cases not because we want to but because WE HAVE TO.

Each and every day we are bombarded with choices. Advertising telling us we need this product or that, just to fit in with society. No longer do we need to save for what we want. Now you just put it on plastic and pay for it later.

The other choice, for those that wish to escape this merry go round of eternal debt is to learn to invest. But then what? Looking around your home country you see negative returns or returns marginally better than that from a bank. Investing in your own country has other risks too. You are tied to the one currency; inflation will affect you not to mention if your home market is doing poorly your investments will also.

What’s the answer to this dilemma?

The Global Approach?

The idea of investing money in other countries – perhaps in places you’ve never been or ever wanted to go – can be even more daunting than the prospect of massive debt or poor performance on your investments. At least if it’s at home you can see it, maybe drive by it and touch it.

But looking at it logically if you lived in the city of Sydney would you confine your investments to that one city? Only investing in companies that conducted business there? No. I’m sure you would look at such an investment strategy as foolish. Why because whatever happened in Sydney would affect your investment.

Interestingly, when we start to diversify our investments geographically we actually lessen the risk. Statistically, most major world markets experience a bear market (downward trending market) about twice every twelve years. But they don’t happen all at the same time. So if one market is doing poorly chances are there are others that are doing well.

Wealth is rarely destroyed! Instead it transcends boarders and national boundaries sometimes in the same hands, whilst at other times being redistributed. When you think about it, if a market is losing money it must be going somewhere it’s not all lost due to profit downgrades and poor economic forecasts. The money starts to flow into the performing markets and as more money comes in the more those markets tend to rise. But it’s out of my league!

If you’re like most people then you’re probably thinking, ‘well okay, this all sounds great but I don’t even understand investing in my own country... I don’t have enough time to learn about companies in other countries... even if I did learn I don’t think I’d have the confidence to do it on my own’.

If these thoughts or others like it just crossed your mind, relax you’re not alone. I promise you there is a simple solution and if you’ll spend the next few minutes going over this website then I’m sure you will agree.