Traits of a Good Investment

The internet has made investment opportunities more accessible than ever. From online travel agencies to big-name corporations, more companies are opening up their doors to the average investor. To help you find a good investment, Jumia Travel shares four traits of a good investment. These traits are a clear indication of whether a company is a good choice. Below we will look at a few of these traits.

Low volatility – As mentioned before, investing can be risky, so a good investment should have a low volatility. While losses are part of the game, a good investment will hold its value and increase in value over the long-term. Ideally, you can exit the investment at a good price. For shorter-term investments, safety and liquidity should be top priorities. However, these qualities are not always mutually exclusive.

High growth – Over time, asset prices will rise as long as the company continues to increase in size and sales. This is why blue-chip companies are a good investment. However, it is not necessary to invest in blue-chip companies to reap the benefits of growth. Any company with a solid growth potential is worth investing in. It is crucial to buy at the right time, however. Listed companies, for example, are an excellent investment.

High liquidity – An investment opportunity that enjoys a high liquidity value is one that is easy to sell and convert into cash. Liquid assets are easier to sell at real value and can earn higher returns on your investment. Stocks and bonds are examples of liquid investments. You can sell them at any time and still make money. You’ll have the convenience of liquidity as well as effective risk management. So, make sure you choose the right investments for you and your portfolio.

Time horizon – The ideal time for investing in a company’s stock is 10 years out. If you can’t see yourself owning the stock for that long, you’re probably not ready for it. Generally, the most lucrative business investments are those that require you to hold the stock for years and not sell it immediately. It is essential to remember that a good investment can be dangerous if you don’t know how to pick it.

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