3 Categories of Investors
An investor is someone who puts his money into something with the aim of deriving a benefit or profit from it. When it comes to investment there are three kinds of investors:
1. Foolish investors 2. Average Investors and 3. Wise investors.
The foolish investors are people who invest all their money in their wants and desires. They are out for the latest shoes, designer this and that even when they have little money. They hardly know what it means to delay gratification. All they know is that they must have what they desire and crave for NOW, so they simply invest in that. Of course such things bring no returns. They principally purchase liabilities rather than assets. It may be better to pause here and define liabilities and assets because many are of the impression that assets are items we spend money to buy while liabilities are debts or items that are not useful to you. This may not be entirely true. (more…)
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