Types of investments that Colayco advised
Below are types of investments which Colayco has classified them into asset classes and the types of options into three categories with his admirable analysis and recommendation namely:
- Lending Investments
- Ownership Investments
- Speculative Investments
In lending investments - the money you invest is given to borrowers as loans. You earn from the interest charged to the borrowers for the use of your money. This is recommended for those who need regular and definite income and those who are 50 years old or older who can take less risk. About the return, he said that it is relatively low for the short-term but exceeds inflation rate in the long term. And the money you make here is called interest. However, your investments will not automatically increase, so you must make sure that you reinvest your earnings.
In ownership investments - this make you a part owner of the business or company which receives your money. You need to sell before you realize your gains or losses. This type of investment is recommended for younger investors in their 30s to late 40s. The risk is high. You make money if the business or company goes up in value and vice versa. You gain or lose money only when you sell. About the returns, he said if given enough time you will receive the highest return and it is in the form of dividends or capital gains.
This type of investment usually has vague and incomplete information on how it can generate profit. You hope and take the chance that it will eventually increase in value and give you bigger returns when you sell it. You place a bet or buy a lotto ticket hoping you will win. The risk is very high. About the returns, you earn only if you are able to sell your investment or win more money. Speculation is for the short term only. You expect to cash in - in a very short period like a few months or maybe at most one year.
Where to buy the book? If you were in Philippines - try to visit National Bookstores outlets in the country.
More Info About The Author - Francisco J. Colayco
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