The Best Ways To Invest Money

In an earlier article, we talked about investment in general, by clarifying the concept of investment and its importance, as well as its risks and ways of reducing them, and many of the most important things related to the investment process.

If you have not read this article I recommend you to read it, so that you can know the controls and mechanisms of the investment process and be a good idea about it, you can access it through the link below:

The most important question that many can ask now is: What are the most important and best ways to invest money?

So in today's article we will look more deeply at the practical aspect of the investment process, which is how to invest money.

At the outset I would like to tell you the story of a man who managed to make a huge fortune by investing.

Warren Buffett, an American businessman, is one of the 10 richest men in the world with an estimated fortune of $ 86.6 billion.

Everyone might expect that a man like this made his fortune through inheritance, or trading in oil and banks as one of the most important investment forces that make huge profits.

But Warren Buffett relied on a simpler and smarter way at the same time, his investment was based on the purchase of shares in companies that he thinks worth more than its value, has invested in many companies that made him huge profits after several years, and perhaps the most important brand known "Coca Cola".

Buffett began working at a young age by selling juices and baked goods.Although his family already had a company, he was able to rely on himself in the investment business and built his own brand.He decided to leave his father's company as an investment officer because Differences with partners.

Buffett has set a lot of principles for new investors that I advise you to look for, and take advantage of the mentality of this great investor.

Types of investments

At the outset, you need to know the types of investments, so that you can choose the right investment that enables you to form your investment portfolio to suit the way you think, experience and personal nature, as well as the amount of money you intend to invest.

Financial investments are divided into

Short-term investments

It is one of the most important short-term investments in the financial markets, as well as buying a particular commodity or product during the year and then selling it again and making profits.

Long-term investments

These are funds that you invest for a long period of up to 10 or 15 years.The aim is to obtain a strong financial return after several years.Investment in stocks is one of the most important long-term investments, as well as investment in real estate assets, gold and psychological metals.

Here are the most important ways to invest money

1 - Investment in financing of pioneer projects

If you look around you will find that part of the human being has the idea, and another part has the money.

The idea owner is looking for a financier or investor to finance his idea, and bring it to the actual implementation on the ground, and the owner of the money is looking for a good idea to invest his money in it and multiply.

Intelligent alliance between good idea and money creates wealth. Wealth is always made from alliances.

As the concept of entrepreneurship has evolved, many entrepreneurs have emerged who have many creative, different or exotic ideas that fit the modern lifestyle of our lives, and many are looking for investors to finance their ideas and achieve a successful partnership between ideas and money.

The smart investor here is always looking for a lucrative idea and a good opportunity!

A simple and inspiring example is the famous online payment company Fawry, which started with an idea in 2007 in the Egyptian market. Immediate was a simple idea very complex at the same time (providing a simple and easy electronic payment method to the user).

The idea was simple and complicated, and faced many difficulties and challenges, it was difficult to convince investors and companies to the possibility of creating an electronic payment platform, enabling customers to pay their bills from the nearest grocery store, pharmacy or supermarket.

Not only was it difficult to convince investors to invest their money in this idea, but it was also difficult to convince telecom companies and government companies that the public would use the service, and then the biggest challenge was to convince the public itself to use an electronic payment method.

Today, Fawry got a $ 100 million sale.

Can you guess how much profit you could have made today if you invested money in Fawry almost 10 years ago?

This is what the smart alliance between good idea and money means, which the entrepreneur wants to invest more intelligently and professionally.

Steps To Invest In Pioneer Projects

• Look for a simple idea, creativity always comes from the simplicity of ideas.
• Get in touch with the idea owner, and ask him for the initial details that let you understand the idea more accurately.

Consider the target market and make sure you need it.There might be a great idea, but the target market is not the right one.

• Therefore, the stage of studying the dimensions of the target market and the possibility of implementing the idea has the most important stage to help you determine your decision to invest in this idea or change it.
• Discuss the idea with specialists in the same field, and always remember if you are not a specialist, any expert or specialist in any field saves you years of effort in research and loss of money.
• Don't pay easily. A smart investor only pays after he makes sure that the idea is much more likely to succeed.

This Article was First Appeared on Bizop.org