“Bitcoin is a good investment that produces good returns. You can make around 8% in capital gains”, a friend of mine said. The friend’s suggested idea did not come to fruition. Several reasons can be attributed to this. However, passive income is good if you make it. “Do I have the right background and experience to invest in a business of this kind? Will I make a profit if I do?”, I asked myself.
Bitcoin is one type of cryptocurrency, like Ethereum and Tether. How much we know about the cryptocurrencies? Is it a profitable area to invest? What can be a return on investment? What is the risk involved? Investors should keep in mind these questions before investing.
It is essential to have a thorough knowledge of the business and its mechanism of generating profits. Investors are not somebody who is flush with cash and invests without thoughtful consideration.
Having a business without trying to understand its nature is a foolish act that costs many people a lot of money. One of the best books I’ve ever read was The Richest Man in Babylon, authored by George S. Clason. The most important lessons from the book were to earn, save and invest (ESI). In order to make an investment, you need to do a lot of research and use a lot of methods. Investing should never be driven by emotion or inspiration from a friend.
Still, there is a significant knowledge gap regarding business in Oman. Fear grips investors and they wonder where to invest and what the return on investment will be. There aren’t many professional business coaches or guidance services on the market.
One of the small investors, wanted to invest with a limited budget. Among the companies he found, one was seeking investors with returns of 24% capital gain. The business was of food stuff. The investor agreed and signed a contract for OMR 20,000 for three years. In the agreement, it was stated that, he will receive profits on a monthly basis until the contract is completed.
During the first two months, the investor earned a profit. By the third month, the profit had stopped. Suddenly, the investor became panicked. He started to call the business owner. The business owner did not reply. A visit of the investor to the premises revealed that it was closed. It was then he realized the owner left Oman.
I recommend reading Ben Graham’s The Intelligent Investor if you haven’t already done so. An accurate investment method is outlined in this book. It has been mentioned in this book, that, to invest successfully over a lifetime does not require a stratospheric IQ, unusual business insights, or inside information. What’s needed is a sound intellectual framework for making decisions and the ability to keep emotions from corroding that framework.
Disclaimer : The opinions expressed within this article are the personal opinions of the author. The facts and opinions appearing in the article do not reflect the views of TAS and TAS does not assume any responsibility or liability for the same.