Basic FL
What is the point of putting your money in a bank?
Safe secure place for your money
ROI
return on investment (your profit)
What company did Warren Buffet run?
Berkshire Hathaway
True
When budgeting, should you allocate money for savings?
Yes, savings are an essential aspect of budgeting
Name one way your money can work for you
Passive income
Something that makes you money without direct input
What is an economic moat?
An advantage one company has over its competitors
The best time to start investing is Today
True, compound interest is very powerful
What are Needs and how do they differ from Wants?
Needs are essentials like groceries and utilities, while Wants are non essential things that improve quality of life like traveling, hobbies, and going out.
Who can be an investor?
Anyone can be!
Asset
Is there a 100% secure place to put money?
No, every investment method holds risk
Day trading is advisable
False, it is very hard to profit from day-trade, even for those who know what they are doing.
Name the 3 major categories in a budgeting plan
Needs, Wants, and Savings
What is the investment thesis?
A statement of what/how you will invest your money
Something that takes money from your pocket
How many Golden Rules of Investing are there?
7
You need to be rich to invest
False, you can start investing with as little as $100
What is an emergency fund?
A fund that is used in emergency situations or crisis situations.
What is the average return rate of the S&P 500 over the last 5 years?
13.5-15.4%
ETF
Exchange Traded Fund. A type of stock where investors spread their money over multiple stocks to protect their money
What is Warren Buffet famous for disproving?
The Efficient Market Hypothesis
You should follow the advice of stock analysts online or on the news
False. While you should listen to their advice and their opportunities, ALWAYS do your own homework. Do not rely on someone else's judgement.
YES! everyone needs a budget, regardless of they income.