Keep INVESTING Simple and Safe (KISS)
****Investment Philosophy, Strategy and various Valuation Methods****
The same forces that bring risk into investing in the stock market also make possible the large gains many investors enjoy. It’s true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!****Warren Buffett: Rule No. 1 - Never lose money. Rule No. 2 - Never forget Rule No. 1.
According to Lloyds TSB, the typical British household has £5,000 in savings and investments. This compares to over £19,000 in China.
German households, meanwhile, have average savings of almost £9,000.
The bank said that the “remarkable” findings reflect the fact that there is no “social safety net” in China, such as state pensions and benefits, meaning that families must provide for themselves financially.
Lloyds TSB also said that the so-called savings ratio in the UK – that is a person’s savings as a proportion of their disposable income – has been falling over the last decade.
Currently, Britons save around 7 per cent of their disposable income. This compares with 47 per cent in China.
Greg Coughlan, head of savings at Lloyds TSB, said: “Despite significantly higher income levels, today’s British and German households are both being roundly beaten in the savings stakes by urban Chinese households.”
Dr Karl Gerth, author of As China Goes, So Goes the World: How Chinese Consumers are Transforming Everything and a lecturer in modern Chinese history at Merton College, Oxford, said that Chinese people save out of necessity because they have to pay for healthcare, education, housing and their retirement.
“It has nothing to do with ancient Confucian wisdom and all to do with contemporary realities,” said Dr Gerth.
He said that savings levels among young Chinese people are far lower than among their parents’ generation.
“In China, young people are learning to spend,” he said.
Lloyds TSB’s findings were based on over 3,000 interviews with adults in the UK, China and German.