The two key simple questions of investing are:
- What’s the purpose of the investment?
- And what’s the timeframe?
Work out the answer to these questions and you can then target where you should invest your money.
During conversations I have with all types of investors, they often describe an investment they’ve made. I typically then ask them why they made the decision to purchase the asset. Frequently, they don’t really know and often respond vaguely by saying they were simply trying to build their wealth.