The Wise Investor
properties in this outer area may become more popular and
so prices may rise. Everything that helps paint a picture for
you will help in the choice of a property, company or other
Often the non-financial information is the most useful, as
may tends to tell you what will happen in the future, rather
than what happened in the past.
Always remember that financial data relates to past
events, not to the future. You will also find that few people,
including professionals, go to the trouble of including these
factors, and so you may be able to choose an investment
that is not yet popular, and so is good value for money.
Many institutions, such as banks, insurance companies
and even professional associations produce small booklets
and pamphlets on specific topics.
These are usually free, and can be extremely useful.
Because they must be small, they keep to the basic facts,
rather than confusing the reader with complexities that cloud
the main issues.
They are updated regularly, so they tend to be more
accurate than books. They are also written in simple
language that the layman can easily understand. Many
professionals can pass these booklets on to you.
Books on investment, of course, can be useful. However,
the details of tax and legislation change often, so be careful
to check that the details are accurate. Overall, I suggest that
you use these books to learn general knowledge, and consult
with professionals about the details before a buy or a sell.
When you are gathering information about investments,
there are two types of material you should be looking for.
The first is current information about the investment. This
will allow you to form a picture of how it operates, and
whether it produces a strong, reliable income.
The second relates to the future. This includes opinions
and data that predict how the investment will perform in the
A word of caution here Kate.