Topic.
Core investing concepts explained plainly: what investing is, risk vs volatility, compounding, inflation, diversification, and market cycles.
6 articles in this topic
Investing is the act of putting money to work with the expectation of receiving more back in the future. That is the entire concept in one sentence. Everything else is detail. This article explains the basic mechanics: what you are doing when you inv...
These three words are often used interchangeably, but they describe different things. Confusing them leads to poor decisions. Understanding them leads to calmer ones. This article explains the distinctions: volatility as normal movement, risk as the...
How compounding works, why contribution rate and time dominate investment outcomes, and how fees act as compounding in reverse. The maths is simple; the behaviour is not.
A savings account that pays 3% interest sounds like it is earning money. If inflation is running at 4%, it is not. The number in the account is rising, but what that number can buy is falling. This is the difference between nominal returns (the numbe...
What diversification actually does, what it cannot do, and why the instinct to concentrate is persistent despite evidence against it. Diversification removes the possibility of ruin from a single mistake.
Markets fall. This is not a warning or a prediction. It is a description of how markets have always worked. Understanding why markets decline does not help you avoid them. No one can reliably predict when falls will happen or how deep they will go. B...
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