One thing I’ve found over the years in finance is that the number of things people talk about investing in is pretty narrow. Usually, it’s stocks. More so, it’s individual companies (think about how much play Apple has gotten over the years).
In addition to the conversation being relatively narrow, individual investors tend to focus on just one or two investment domains. This is typically stocks and real estate.
Obviously, the world of investments is much bigger. And, to make it easier to understand, I put together a simple cheat sheet with broad investment categories, common sub-categories, and investment examples for each:
Now, I won’t claim this is the perfect guide. I did a lot of googling though to see what other guides and infographics people have put together and think this one is better than average. (Yes, I am slightly humble bragging but hey, when you know you know right!?)
In the next few posts, I’ll talk a little bit about each of these investment categories and give some quick thoughts. Then, it’ll be time to do some really cool portfolio allocation analysis!