① What tools are there for investment and financial management?
(2) Which financial instruments have higher risks and which ones have lower risks?
③ What tools should I choose to embark on the road of financial freedom?
check against the authoritative text
For example, if the investment is 1 0,000 yuan and the rate of return is 20%, then the first year is10,000 * (1+20%).
The second year is10000 * (1+20%) * (1+20%).
The third year is10000 * (1+20%) * (1+20%) * (1+20%).
What is the core tool of our financial freedom?
The first category is risk-free financial management tools.
Treasury bonds, time deposits, reverse repurchase of treasury bonds, money funds and bank financing (principal-guaranteed)
These five financial management tools are risk-free, but the yield is relatively low. Let's remember two. Reverse repurchase of treasury bonds and money funds. The annualized rate of return is generally around 3%-5%.
The essence of national debt reverse repurchase is national debt mortgage loan, which is risk-free.
Sometimes when the market is short of money and it is not easy to borrow money, the annualized interest rate of 7-day reverse repurchase may be as high as 20%. This is also a risk-free excess return.
But it may be once a year, about 20%, and the rest of the time is very low.
The teacher gave the following example.
Let's take a look at the annualized rate of return on the reverse repurchase of 3-day government bonds.
In fact, a lot of information in this picture is useless. We only look at key information. 2.855 This place is the key information, representing the annualized rate of return, which means that you can get an annualized rate of return of 2.855% by borrowing money now.
It can be seen that the annualized rate of return of the reverse repurchase of government bonds can often reach more than 13% (from the top of the green line), and occasionally it can reach more than 20%. This is all risk-free income, and it is all money given by the market.
The second risk-free tool?
The money fund is also called "Turkey". There is a guy in the monetary fund family who is very famous. His name is "Yuebao". I think many friends have bought it, or at least heard of it. Other money funds are similar to Yu 'ebao.
Pick up the money. Little secret?
Usually, if you buy money into the money fund, you can get a risk-free income of about 4% every year.
When the reverse repurchase rate of national debt is high, such as 10% or more, you can sell the money fund and directly buy the reverse repurchase of national debt to obtain a high rate of return for several days.
After the money from the reverse repurchase of government bonds comes back, buy the money fund on the same day.
The second category is low-risk financial management tools.
One is low-risk and medium-yield, and the annualized rate of return is generally between 6%- 15%, mainly including graded fund A, convertible bonds, bond funds and stock index funds.
The other is low-risk and high-yield, and the annualized rate of return is generally between 65,438+05% and 30%, mainly including stocks, REITs and real estate, which can generate money.
Low risk can also have high returns, and high risk is more likely to have high losses.
The risk and income are mainly determined not by the financial instruments themselves, but by our financial knowledge.
Money-making assets are stocks that continue to pay dividends. The annual dividend yield of high-quality money-making assets can be as high as 10%!
For example, this A-share listed company is a very high-quality money-making asset with a dividend yield of 13.94%, which means that the annual dividend yield is 13.94%.
If the price increase is added, it is normal that the annualized rate of return exceeds 15%.
Dividend interest rate = dividend/current price
Money-making asset-based REITs are high-dividend REITs. In fact, general real estate investment trusts always pay high dividends. Because the laws of various countries stipulate that REITs should distribute at least 90% of their net profit to investors every year. Therefore, REITs, a profitable asset type, is also a goose that keeps laying golden eggs.
What is REITs? Real estate investment trust is a real estate investment trust. Investing in REITs is essentially investing in real estate. You can invest hundreds of dollars in real estate through real estate investment trusts. It is as convenient as buying and selling money funds and stocks. Some REITs have an annual cash dividend as high as 15%!
Bonds convertible into shares. There is no risk in buying convertible bonds with high credit rating below 100 yuan. When the stock market rises, it can still get excess returns. It is an investment tool with a guaranteed bottom and an uncapped top. Generally, the annualized rate of return can reach 10%-20% for purchases below 90 yuan.
Stock index fund A stock fund that replicates the stock index. Because the stock index has the characteristics of immortality and long-term rise. Buying stock index funds at the right price is almost risk-free in the long run. Its annualized rate of return is generally 10%- 15%.
The third category is medium-risk financial management tools.
The fourth category is high-risk financial management tools.
The essence of P2P is Internet usury. This standardized financial management tool is not traded on the national exchange. The risk is very high, and it is easy to lose everything.
Private equity funds are funds raised for a few people and can be invested in various financial instruments. Private equity funds are non-standardized financial management tools with great risks. There are millions of real private equity funds. It is beyond the reach of ordinary people.
Bitcoin is a kind of digital currency. It is not a standardized financial management tool for trading on national exchanges. It does not generate cash flow, belongs to other assets, and can only earn the difference. It's very risky
Collectibles are not standardized financial management tools traded on national exchanges. It does not generate cash flow, belongs to other assets, and can only earn the price difference, which is not easy to realize. It's very risky.
Real estate with monetary consumption asset type continues to bring net cash outflow. Because the monthly net cash outflow is certain, that is to say, the monthly loss is certain. In the future, we can only make money by rising house prices, which is very uncertain. The risk is relatively high.
Standardized contracts for futures trading on futures exchanges. There is no credit risk and there is no escape. Futures itself does not generate cash flow, but can only make money by the future price difference, which is very uncertain. In addition, futures are generally highly leveraged, and it is easy to lose principal. It's very risky
Stay away from them, stay away from them, stay away from them.
In the process of realizing financial freedom, it is enough to mainly use risk-free and low-risk financial management tools.
What are the three core tools to realize financial freedom?
Types of assets that make money: stocks, real estate investment trusts and enterprises.
Solution: learn the skills of realizing financial freedom, buy or create money-generating assets, and use money-generating assets to raise money-consuming assets.
[Question] What is value investment? What is speculation?
Speculation: buy low and sell high. Thinking about making quick money, I will make money if I invest. It is a bad financial tool. Don't look at the essence, just want to make money.
Value investment: for example. Suppose you invest in a company and you spend money on its shares. You should read its financial report, just as we buy a transfer shop to see its running water. Look at his profitability. Then look at the model of this enterprise. Enterprise management mode. There are two very important links in analyzing this company, one is to look at its financial report, and the other is to look at its business model. I see. Investment. Holding it for a long time after investment, accompanying the enterprise to make progress together, and reading the financial report of this enterprise once a quarter, this is value investment.
Financial report analysis is to look at the past of the enterprise. Enterprise analysis is to look at the future of the enterprise. We can overcome inflation by mastering the past and future of enterprises.
Article 6 the key thinking of the rich
When can I start investing?
Why do some people lose money when they buy stocks? After reading a few books and studying for a few days, I was in a hurry to go to the stock market. It will take us months to learn to drive. As a highly specialized and refined field, we will "try" without systematic learning. What's the difference between this and a soldier who went to war after practicing for three days and reading a few martial arts novels?
Soldiers carry out systematic training to save their lives, while investors carry out systematic learning to save money. On the contrary, learning half a bottle of water and putting it into the market is euphemistically called "trying". Such an "attempt" will not learn any lessons or experience, but will only gain pain.
People who have been systematically trained will reap every drop of blood from those who are ignorant and self-righteous.
This is the truth of investment. If you want to make quick money without systematic study, you will die. When you plan to invest in a goal, you have a systematic analysis method and no longer worry about ups and downs. This is the time when investment can really start.
To sum up: the first principle of investment: don't invest if you don't understand. If you know how to invest safely, blind "trying" will undoubtedly harm you, and systematic training can really save money.
Financial market website: snowball tide information network
-Many of the above contents are taken from the course notes of Finance and Business School.
Just for learning and feeling! 2020.02. 14