May 26, 2021 Last updated May 26th, 2021 1,496 Reads share

Understand The Risks – Advice From David Kezerashvili To New Investors

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Investing isn’t easy, but that doesn’t mean it’s impossible! You can always make excellent investments in the financial markets and watch your money grow. It all depends on your skill level, your level of knowledge about that specific market, and how diligent and consistent you are in learning about that market’s opportunities and risks. Getting started with your first investment is always accompanied by feelings of anxiety or excitement. One thing that every new venture capitalist has in common is that they will never forget their first investment because of the intense emotions that surrounded it.

It’s always a good idea to seek professional advice before making any investment, but especially if it’s your first. To get you started, we’ve compiled a list of useful investment tips for beginners that will help you grow your money by limiting the margin of loss. Continue reading if you’re ready to get started.

Understand the risks and learn the basics 

When we asked David Kezerashvili, owner and founder of the successful venture capital firm InfinityVc, for his best advice to new investors, he said the most important thing is to understand the risks involved. The biggest mistake new investors make, according to David, is not doing enough background research to understand the investment world. The second major mistake mentioned by David is failing to seek professional advice, particularly when making investments involving new technology or Fintech

The introduction of new technologies appears to be simplifying and making the world of financial investments more accessible to ordinary people, but you must understand that an investment is a risk. You don’t need millions of dollars to make your first financial investment, but any investment is a risk. Today, it appears to be very simple to get started in a few simple steps by selecting an online investment platform, but you must be aware of what you are getting yourself into and consult with a professional to ensure you have all of the information you require before investing.

Five Basics Every New Investor Should Know

When you decide to invest in an existing company or start your own, you will face new challenges. This is a new opportunity for you to learn and gain experience but before anything, you need to know the basics. Whether you’re nervous or confident, you should be aware that successful investing is difficult. Don’t take anything for granted. The truth is that if you don’t thoroughly research an investment opportunity’s set of circumstances and real opportunities to grow your financial effort with it, it can end up costing you a lot of money. 

  1. Focus on the brokers

Concentrate on small brokerage firms to reap benefits rather than pointing to larger corporations that may be chosen with new startups. As a new company you will naturally be unknown and it’s part of the game. But if you can find an established company to help you grow your reputation in your niche, your new company will certainly gain stability, credibility, and space.  

2. The lock-up period

This is the window time when shareholders who own a company’s stock are not permitted to sell it. You should wait until this period is over and then look at how many investors still own stock. Depending on how many people decide to keep their stock, you can get a sense of where the company stands and whether or not it has a bright future ahead of it.

3. The business prospectus

It’s probably one of the most tedious things for a new investor to do, but you must read the business prospectus before investing. A business prospectus outlines the risks and rewards of investing in that company. Your decision to invest should be made only after you have thoroughly reviewed all of the pros and cons outlined in the company’s business prospectus. Regardless of the company, every investor should understand what they are getting into before making an investment.

4. Prudence is never enough

When it comes to money, you should exercise twice as much caution as usual. The truth is that a company may appear to be successful on paper but fail in practice. And the root causes could range from poor management to poor marketing campaigns to a lack of goal-oriented strategies. So, if a company appears to be “too good to be true,” just ignore it; it will most likely be your worst investment choice.

5. Return timing

Everyone would love to open the door on a sunny morning and discover a pot of gold at the end of the rainbow right in front of them. Be realistic and understand that your returns will be gradual. Small businesses and startups require both time and money to grow, which in investment terms means that you will not see a return for a few years. Financial investments require time to mature and bear fruit for you.

Our last brilliant tip for investing wisely would be to create an “exit strategy” in case something goes wrong. It is always beneficial to have a backup plan in case of a major setback.

Michael Miller

Michael Miller

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