Introduction
Investing resources can bring significant benefits to individuals and their companies. Investment issues are widely discussed in businesses of various levels, attracting many entrepreneurs and employees. I watched a video about investors’ strategies and actions to choose stocks to buy created by Richard Coffin (n.d.). Even though buying and selling shares is an opportunity to make a big profit, it is also a severe risk for investors.
Discussion
The chosen video is interesting and valuable for those who want to know more about investing. It clearly and briefly explains what stocks are and how they are bought. I learned new information about active and passive investors and their strategies based on fluctuating shares’ prices. The active investors’ idea of beating the market attracted my attention with its ambiguity. Coffin (n.d.) notes that buying stocks is not an exact science, highlighting the difficulties of forecasts and calculations. No shares will bring guaranteed profits, so the investor’s task is to analyze the market regularly. Successful investment strategies usually contain both active and passive methods, and the idea of beating the market seems to me extreme.
Competent investments are essential for business representatives as they provide an opportunity to increase their income. At the same time, the business and companies can issue their shares and attract funding for their development. The theme of the considered video is closely related to chapter 19 in Understanding business – the sources complement each other.
Conclusion
This textbook section also describes the features of investing in securities (Nickels et al., 2019). Thus, investing in stocks can be profitable but carries certain risks, so it is necessary to think through a strategy for buying and selling them.
References
Coffin, R. (n.d.). How do investors choose stocks? [Video]. Ted-Ed. Web.
Nickels, W. G., McHugh, J. M., & McHugh, S. M. (2019). Understanding business (12th ed.). McGraw-Hill Education.