Why Should I Invest | Oil and gas

1
The Basics of OilGasInvesting

• Know what to do with your money or what others
  are doing with your money!

2
Investment Terms to Know

• Investment The commitment of funds to one or
  more assets that will be held over some future
  time period
• Risk The chance that the actual return will be
  different from the expected return
• Passive Investment Strategy A strategy that
  determines initial investment proportions and
  assets and makes few changes over time
• Active Investment Strategy A strategy that seeks
  to change investment proportions and/or assets in
  the belief that profits can be made

3
More Terms to Know

• Direct Investing Investors buy and sell
  securities themselves, typically through
  brokerage accounts.
• Indirect Investing The buying and selling of the
  shares of investment companies, which, in turn,
  hold portfolios of securities

4
Why Should I Invest?

• Retirement Investment in the long-term which
  means you can ride the market
• Large Purchases (House) Invest in safer
  securities (Short-term)
• School Invest in safer securities, the sure
  investments

5
What Can I Invest In?

• Money Market Securities
• Treasury Bill
• Negotiable CDs
• Fixed-Income Securities
• Bonds
• Asset-Backed Securities

• Equity Securities
• Stocks
• Derivative Securities
• Options
• Future Contracts

6
Diversification is KEY

• Diversification is the key to the management of
  portfolio risk because it allows investors to
  significantly lower portfolio risk without
  adversely affecting return!
• International diversification is important
• A portfolio with 40 different stocks is said to
  be adequately diversified

7
Investing Tips

• USE 401K
• Flee the Bank There are higher yielding
  investments out there, dont settle for a low
  return on your investment
• Buy low expense Mutual Funds Dont pay too many
  fees
• Buy and hold Avoid high commission fees and
  higher taxes

8
IMPORTANT INVESTING FACTS TO KNOW

• Only 33 of money managers outperform the market!
• Historically Stocks return 11, Bonds 5
• Passive Investment is the best way for most
  investors

9
Michael Bowen Oil and Gas

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