Value for investment

In case you are living under a rock someplace the Hive witnesses have increased the APR on HBD to a whopping 20%. It had already been increased to a very generous 12% some time ago and many, myself included have move some of their earned HBD into savings.

I am told (I read this on markymark's update) that this change is subject to approval by the witnesses, so may or may not stay at 20%, but all indications are that it has landed well with the witnesses and should get enough support to be retained. So let's put 20% into perspective here. That means for every 100 euros, dollars, pounds or otherwise that you invest, you will get 20 in interest every year. Assuming you are disciplined enough to not touch it, the 120 then earns 24 the next year and the growth continues to compound every year.

When I noticed that the rate was 12% a few months back, I transferred over 500HBD to the savings account. In truth the plan was to free it up once the price of Hive cam down a bit, but then I thought about the benefit of a 12% return and I have not touched it, nor do I plan to, instead I plan to add to it.

Dollar Cost Averaging

One of the best books that I ever read in relation to investing was written by Benjamin Graham in 1949 before the vast majority of Hiveans were even born - we were all a mere twinkle in our Father's eye and in fact some of our Dad's were not even born yet. So suffice to say it was a long long LONG time ago. Mr. Graham sets out some fundamentals in this book around investing and one of them in particular stick with me and I have been applying it ever since. It is known as dollar cost averaging. In that book I read that:

"the benefit of Dollar-Cost Averaging is to prevent the practitioner from concentrating his buying at the wrong times.”

Instead the central tenet of this investment style is to invest a fixed amount every month or week regardless of price and by doing so, yes you may buy some things at at all time highs, but equally you buy at all time lows too and end up compounding those gains over many years. You also ensure that you don't buy a lot of something at a higher price than it is worth. Instead you buy little and often and spread that risk out.

For any of you reading this post and would like to buy the book, here is a link to Amazon or just Google "Benjamin Graham's The Intelligent Investor".

https://www.amazon.co.uk/Intelligent-Investor-Definitive-Investing-Practical/dp/0060555661/ref=sr_1_1?crid=17R5CXFNBOXWM&keywords=the+intelligent+investor&qid=1649694660&sprefix=the+intelligent+%2Caps%2C45&sr=8-1

World famous investor and multi-billionaire Warren Buffet swears by it and was thought a lot of what he knows and applies for Berkshire Hathaway by Graham before Graham died in 1976. My plan going forward is to invest 20 to 50HBD monthly in the savings and Power up the remainder, as I also want to grow my voting power here, so that I can help other aspiring writers and content creators in the same way I was helped in my earliest days here on Hive when I felt invisible.

Tell your friends

If ever there was an opportunity to start onboarding new users, then this is it. Our platform, the one that we have all grown to enjoy and love over the weeks and months and years is offering people 20% interest on an investment. When you consider what Google tells us when we ask what the average return is on share investment, you realise quickly just how good 20% actually is.

The difference is the average of 10% is going to cost you money in fees if you use a third party to pick your diverse basket of shares or cost you time if you try to pick them yourself, which is what I do myself.

"The historical average stock market return is 10%"

I plan to tell some of my family and friends about this opportunity and I will pick carefully, as in my opinion they need to be tech savvy and open to a certain level of risk. There is no point in my telling my elderly Auntie who struggles to send a text message, while my young cousin who already owns some Bitcoin will quickly understand the potential here for investment and wealth generation. I hope that this does not come across as ageist, but I think you get what I am saying.

All photos used throughout this post are my own.

Thanks a million for reading and please stop by again

Peace Out