Posted by: Gaf.Dya.Hoina December 21, 2008
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"i dont want to lend my money i want to invest it dude????????????"
Nepali Kancho:
It seems that you have a fundamental lack of understanding about investments so let me help you out. You are "lending" money when you buy bonds in the market. So, gedagudi has a legitimate investment proposal.
Now, whether he will default on his interest payments and finally the principal is a different story. Considering that this a highly risky proposal, you could assume a Moody's rating of "C". Hence, a 12% return sounds reasonable. Of course, it's much more than what you'd make in the stock market for a short 2-3 year time frame. The higher the risk, the higher the reward, you know :).
So, now, the question is what kind of investor are you? Risk averse? Moderate? Or are you ready to take on more risk?
I think I've said enough for now. Hey, time pass garna kai ta garnai paryo ni, hoina? :D
Nepali Kancho:
It seems that you have a fundamental lack of understanding about investments so let me help you out. You are "lending" money when you buy bonds in the market. So, gedagudi has a legitimate investment proposal.
Now, whether he will default on his interest payments and finally the principal is a different story. Considering that this a highly risky proposal, you could assume a Moody's rating of "C". Hence, a 12% return sounds reasonable. Of course, it's much more than what you'd make in the stock market for a short 2-3 year time frame. The higher the risk, the higher the reward, you know :).
So, now, the question is what kind of investor are you? Risk averse? Moderate? Or are you ready to take on more risk?
I think I've said enough for now. Hey, time pass garna kai ta garnai paryo ni, hoina? :D