How to Invest, Part 1: Understand risk and return

People often ask me, how is The Evidence-Based Based Investor funded?

The answer is, it’s partly down to having three strategic partners — S&P Dow Jones Indices, plus Sparrows Capital in London and Biograph Wealth Advisors in Dublin — who kindly help to pay our running expenses.

But our main source of funding comes from producing high-quality video content for evidence-based financial planning and asset management firms.

I’m pleased to unveil our latest video project — a six-part documentary called, simply, . It was commissioned by Wealth Matters, a planning firm that serves the Home Counties of England.

The first video explains a fundamental concept that every investor needs to understand — the link between risk and return.

The bad news is that risk is unavoidable; don’t let anyone convince you otherwise. Of course, it needs to be managed, and you shouldn’t take more risk than you can afford to take, or than you need to take. But you have to accept risk as the price you pay to achieve your investment goals.

Enjoy the video — and please share it if you find it helpful.

How to Invest: Understanding Risk and Return from Wealth Matters on Vimeo.  

INVESTING EXPLAINED — WITHOUT THE MARKETING SPIN

When it comes to investing, there is a dizzying number of complex options available. 

How to Fund the Life you Want by Robin Powell and Jonathan Hollow is a new book designed to provide clear, objective guidance that cuts through the jargon, giving you control over your financial future. 

The authors strip away the marketing-speak, and through simple graphs, charts and diagrams, provide investment evidence that you can use again and again. They also alert you to myths and get-rich-quick schemes everyone should avoid.

The book is published by Bloomsbury and is primarily intended for a UK audience.

You can buy the book on Amazon, on Bookshop.org, and in all good bookshops. There are eBook and audio book versions as well.