First principles of investing

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20. Conclusion

Investing is like skiing. A grandson, father and grandfather at the top of a mountain all intend to get to the bottom, but they tackle the slope in different ways.

• The son will go off piste, experiment with his style, and alternate between triumphant bursts of speed and bruising wipe-outs.
• The father will take the piste at a sensible pace, ski within his limits, but occasionally try something a little reckless just for the fun of it.
• The grandfather will make his way carefully down the easiest piste, avoiding all risks, and determined not to hurt himself.

So with investing people at different stages of life approach it with the same overall ambition - security and prosperity - but their priorities may be different.

To be a successful investor, the first task is to know your own goals and limitations. When you know that, you can choose an investment style that suits you, and buy the products that match your approach.

You have now completed the course. To test your knowledge, take the Assessment test.

1. Five steps to establish your investment goals 2. Your attitude to risk and reward 3. The major asset classes 4. Which type of manager? 5. Your investment assessment kit 6. Is past performance a guide to the future? 7. Easy access deposits for emergencies 8. Fixed income products 9. A rising income 10. The choice of collective equity funds 11. Pensions and ISAs 12. Tax efficient but may be very risky 13. Selecting your shares 14. Your stockbroker 15. Buying your shares 16. Ethical Investment 17. When to sell 18. How to keep your portfolio on track 19. Do you need an adviser? 20. Conclusion

• First Steps in Shares
• How to Read the Financial Pages