New to the world of investing? Looking for answers on how to build your personal wealth? You’re in the right place!
The Wealthy Backpacker is excited to introduce CRACKING THE WEALTH CODE, the monthly podcast where our investment experts tackle those basic questions you’ve always wanted to ask.
Here’s a sample from our latest podcast where Jon Ward interviews AJ Harvey, editor-in-chief of The Wealthy Backpacker Investment Bulletins:
Question: Traditional theories of risk and reward say that to earn high rewards, you have to take high risks – is that true?
Answer: That could be true for certain people, but if your investing approach is to minimize risk and buy undervalued companies where there’s a margin of safety, in fact, your risk reduces and your reward dramatically increases. Also, risk and reward is a function of your age.
Question: What does hedging mean?
Answer: Hedging means taking an offsetting position to your investment portfolio, which has a negative correlation. This kind of offsetting strategy has been quite an important element of my approach to investing for many years.
Question: What are the most important types of investment?
Answer: There are 4 different asset classes: 1) Equities; 2) Bonds; 3) Commodities; 4) Currencies; and in recent years we have another two classes added which is 5) Volatility; 6) Cryptocurrencies. In future podcasts, we’ll explore my Asset Quadrant and look at how these different assets play different roles in different circumstances.
Question: Do you have any other tips for someone who’s just starting out?
Answer: They should become educated in investing – become a voracious reader of all information that’s critical investment in finance. Read books, blogs, educate yourself.
Like to hear FULL interview recording, or read the transcript? You can find the LINK HERE and in your Resource Center now!