Investing..

When it comes to investing, most investors never read the financial statements of the company they are investing in. Most investors would rather invest on a hot tip or a low price or high price, depending upon the momentum of the market. Most people get their cars tuned up and check out annually, or have an annual health physical, but most people have never had their financial statements analyzed for flaws or potential future problems. The reason is that most people leave school unaware of the importance of a financial statement, much less how to control one. Small wonder why so many people say investing is risky. Investing is not risky. But not being financially literate is.

“Many investors are like a family taking a drive in the country. Suddenly, on the road ahead of them appear several large deer with massive horns. The driver, usually the male of the household, shouts, ‘Look at the big bucks.’ The bucks instinctively bolt from the road and onto the farmland alongside the road. The driver veers the car off the road and begins chasing the big bucks across the farm and into the trees. The ride is rough and bumpy. The family is screaming for the driver to stop. Suddenly, the car goes over a stream embankment and crashes into the water below. The moral of the story is that this is what happens when you stop following your simple plan and begin chasing the big bucks.”