Five Categories of Investors- Which One Are You?

By

 

An investor is any individual who commits money expecting to receive financial returns. They are different from traders. While traders hold positions for a short time, investors typically take their position for a longer period from months, years or even decades.

But investors also vary amongst themselves on factors such as capital, risk tolerances, time frames and preferences. For example, there are investors who wish to engage in very low risk investments that result to conservative gains. However, there are others who are willing to take on an extra risk as they seek to bag a larger profit. Robert Kiyosaki, the author of a top selling publication rich dad poor dad categorizes investors into the following categories.

1. The Qualified Investor

Qualified investors include analysts and stock traders and understand how to carry out an analysis on publically traded stock. They are more of an outside investor than an inside investors.

2. The Accredited Investor

Someone with a high net worth or high income lies in the category of accredited investor. It is an individual with an annual income of more than Ksh 20,000,000, a couple with more than Ksh 30,000,000 or a net worth of more than one hundred million. 

An accredited investor can access investment opportunities that are not accessible to most people. However, financial education is vital when choosing investments successfully. If you are not willing to set aside your time for financial education, it is essential that you have a plan on marginal returns on your capital, that is if you don’t lose it all. Accredited investors consists not more than three percent.

3. The Inside Investor

These are not the insider investors who engage in illegitimate activities in order to reap big on a trade. It is a category of investors who commit to build their business empire, create wealth and invest outside. An inside investor aims to build a successful business.

The business could be a property such as real estate or a retail company. Successful inside investors have knowledge on creating and building of assets. They have the relevant skills to carry out analysis of companies for investments from outside.

4. The Sophisticated Investor

Education, excess cash and experience are three traits of sophisticated investors. Besides, they have an understanding of the world of investments. This investor maximizes earning and cushions the underlying capital through utilization of corporate, securities and tax regulations. A sophisticated investor is one who does not aim to build their own business but wish to succeed in investments.

5. The Ultimate Investor

This category comprises of investors who have a successful enterprise in which he or she offers ownership interest for sale to the public. The goal is to become the selling shareholder. Generally, an accredited investor pockets a lot of money and has a high net worth.

Although the inside investor basically creates the investment, an ultimate investor is a selling shareholder. Finally, we have the qualified investor who is conversant with fundamental and technical investing while a sophisticated investor understands investment and the law. The big question remains, which are you? Besides, in which category of investor do you want to be?

 

 

 

 

 

 

 

 

Fred Kabiru

Fred Kabiru is a content creator and SEO specialist. He is passionate and experienced about Business, Digital Marketing, News and Technology. He is a believer of content worth reading for a brand worth following.

 


 

Comments

Post a Comment

Popular posts from this blog

Make Money Online Today (Step By Step Guide)

By
Image
Gone are the days when you had to open a storefront to start earning. The internet has changed the game. Today, you can do business in a remote location: no shop, no stocks. Interesting? Well, you don’t have to own the products. All you need is to have that client and come up with how the commodities reach them. Additionally, the internet has opened up a lot of income-earning opportunities. From your couch, it is possible to see your money grow. Such is the case when you join First and Fast Communication System Company (FNFCOM). How does it work? Well, fnfcom is an online airtime distribution system enabling you to have sufficient top-up. Besides, the company seeks to help you out of those mobile debts, the likes of Fuliza, Mshwari, etc. It is time to get out of the cycle of debts. So, how do you go about it? Sign Up at fnfcom The first step is to create an account at fnfcom.   Go to your browser and load the website www.fnfcom.com . It takes you directly to the   home   page. A
Read more

4 SECRET TECHNIQUES TO MAKE YOUR BUSINESS MORE AUTHENTIC

By
Image
 The Untold Secret to Mastering Authenticity. There's something to be said about authenticity in business . It allows us to show up as ourselves, not the cardboard cutouts we think others want to do business with. The result? A much more enriching and personable work experience and an irresistible magnetism that attracts new business. Authentic people and things are the real deal. And when it comes to business, this matters more than you may think. Take a look at the following techniques to build and maintain authenticity in business. #1. Use storytelling Authentic people and things have stories behind them. These stories back up claims and highlights how they got to where they are today. An authentic meal? Passed down from generation to generation. An authentic artifact? Found through an excavation in some part of the world. An authentic business? Started in the basement of a factory, built up through years of struggle, determination and grit. You need to be a storyteller. And no
Read more

6 MOST SUCCESSFUL INCOME STREAMS EVERY WRITER SHOULD CONSIDER

By
Image
 How To Make Extra Cash. Writing is both a blessing and curse. The work is cerebral and tough. The pay isn't always that great. Most writers understand or assume they won't get rich typing. But we can make a great living. Most writers spend all their time earning money from a single source. Whether it's writing articles or books, blog posts or ads- the average writer has a single income stream from his/her work. Not only is this dangerous to your finances , but single-income sources can lead to burn-out and total dependence upon the host source. We can do better. One of the best things about being a writer is that, even when you're reading past your bedtime, your writing can still be hard at work ranking in some extra income. The trick is knowing how to play the publishing game.  Here are some ways to earn or make extra cash as a writer. #1. Books A book can be an evergreen source of income. Books also give authors credibility and help you grow a tribe of loyal readers
Read more

6 WAYS TO MAKE ONLINE MEETINS BETTER

By
Image
 Zoom Tips For Startups. Now that meeting online is a necessity, do you know the various ways to control and improve Zoom meetings and other online gatherings? Zoom has packed plenty of complexity into all the options that can be enabled or disabled to meet different business needs . You will need to decide how many of those choices should be left to the individual versus mandated Zoom's administrative controls. You've probably attended more than a few Zoom sales meetings over these past few Covid years. There are some people, however, who don't appreciate zoom and who don't understand the dos and don'ts of Zoom meetings. Check out these expert tips to avoid embarrassment and boost productivity. #1. Join your Zoom meetings early Do you log on at 9:59 am if a Zoom meeting starts at 10? That's too late. Think about, you would not arrive at a client meeting late, so why go to a Zoom meeting late? Instead of signing in a minute before the meeting is scheduled to st
Read more