More people than ever have recently started investing. Is that a smart thing to do? And then if you’re going to invest, how do you do it? Who better than Janneke Willemse, author of the book Blondes Invest Better, can tell us!
Janneke already gave 2 master classes for elfin members. In this valuable master class, Janneke explains stock market investing and gives tips & tricks on how to invest successfully. The following key take outs are important to remember.
Would you also like to study these 2 valuable master classes? Become an elfin member!
1: Who run the stock market!
Although Janneke didn’t cover this topic until the end of her master class, we can’t resist starting with this: women are better investors than men. Ha, of course we are! This is because we are better prepared: we know the ins and outs, we make a plan and stick to it, we suffer less from FOMO and loss aversion feelings, and therefore we act less (and thus incur fewer costs).
2: Return on point
Investing is smart. Janneke shows that investing in stocks from 1900-2017 gave an average annual return of 8.2%, and investing in bonds gave an average return of 5.1% during that same time period. The difference between the two? With stocks, you buy pieces of the company and become part owner of the company. With bonds, you provide a loan to a company or government in exchange for interest.
3: Don’t be stubborn
Time in market beats timing in market. Janneke shows through studies that wanting to time the market well is an illusion. Being “in the market,” that is, having your money invested, wins. Nobody has a crystal ball and you don’t know if you are buying on a so-called dip and selling at a high. Even the professionals do not appear to be able to do this.
4: Remember these 3 success factors
The 3 success factors for successful investing that Janneke mentions are: spread, time and cost. Keep your costs as low as possible (by not trading a lot and looking closely at the fees a broker or bank charges), make sure you invest for at least 5 years to stay on top of corrections and dips, and diversify your investments. Janneke’s tip when it comes to diversification is: diversify over time, in types of investments (stocks, bonds, real estate) and within these so-called assets you should again diversify. So don’t just buy ASML shares, but shares from different markets, sectors and industries.
5: Start with a small amount
The last tip Janneke gave the ELFIN women? Begin! Start with a small amount. Open that investment account and get a feel for how everything works and looks. Give yourself time to discover how investing works and discover what suits you. This will grow your confidence and prepare you to start investing with larger sums of money.
Want to watch Janneke’s master class back, or attend the next session? You can do that as an elfin member. This becomes you for as little as €12.75 per month. Find out more about membership here.
