Monday, February 3, 2020
The basic guidelines that are specially relevant for aggressive equity Essay
The basic guidelines that are specially relevant for aggressive equity investors and conservative equity investors for investment decision - Essay Example In the need to understand these investment plans, this paper is aimed at evaluating the basic guidelines that are relevant for aggressive equity investors and conservative equity investors for the purpose of decision making. To begin with, aggressive equality investors actively play the game of equality in a vigorous way. Most of the time is spent in managing their portfolio than their consecutive counterparts. They are subjected to high risks; the calculations are in albeit manner aimed at earning big return rates (Chandra, 2009). For the aggressive equality investors, the following general guidelines are relevant in their investment plans for appropriate decision making. The first guideline is to focus on investments that one understands to play their own game. According to Prasanna Chandra (2009, p. 670), ââ¬Å"an investor should always know about the specific company they are investing in, more than the current market does in order to successfully manage their investments.â⬠Therefore, an investor must clearly make a decision on what to focus on. Therefore, decision making is the main key to successful investments. The choices of making decisions are diverse. They include deciding to concentrate on growth, value, multinational companies, small companies, public sector companies, high grade bonds, or low grade bonds. In choosing any of these strategies an investor should be mindful of the basic rules. These rules include being thorough, tough minded, being flexible in knowing the deal about any company one is buying into, and buying when the company is not understood by the existing market is a fundamental idea to keep in mind (Chandra, 2009) . As argued by Candara, one should play the game that one is best in, advocating that an investor should do things as an analyst who is best in doing something. For instance, if an investor can foretell the most important development in the
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.