Akira Ikegami says, "I want to teach my 20-year-old self," the super basics of investment

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    Akira Ikegami says, "I want to teach my 20-year-old self the basics of investing."

    In Japan, too, more and more people are finally switching from savings to investment. . When it comes to investing, there is always the risk of losing money, and some people may have a negative image of it. Of course, there are risks, but financial literacy that allows you to use those risks correctly is important now. On the other hand, there are also voices such as “I want to learn but it is difficult” and “It is difficult to understand because it is specialized”. Therefore, in this article, I will talk about "The Basics of Investment" in "Akira Ikegami's News Was That Right?" We will deliver the contents of the broadcast.

    Written by: Akira Ikegami + Staff

    Written by: Akira Ikegami + Staff

    ■Akira Ikegami Born in 1950 in Matsumoto City, Nagano Prefecture. After graduating from Keio University Faculty of Economics, he joined NHK as a reporter. Responsible for various incidents, disasters, educational issues, consumer issues, etc. For 11 years from April 1994, he played an active role as a father in "Weekly Children's News". The easy-to-understand and polite explanations are widely popular not only for children but also for adults. In March 2005, after retiring from NHK, he worked as a freelance journalist in a wide range of media, including television, newspapers, magazines, books, and YouTube. Since April 2016, he has taught at nine universities, including a professor at Meijo University and a special professor at Tokyo Institute of Technology. His major publications include the "Power to Convey" series (PHP Shinsho), the series "Big Problems of the World That Shame If You Don't Know" (Kadokawa SSC Shinsho), and "What Are You Learning For?" (SB Creative), among others. . ■ Program introduction Akira Ikegami will explain from the basics in an easy-to-understand manner a number of news items that have become a hot topic in recent times, as well as a number of news items that are too embarrassing to say "I don't know" these days! Whether you're familiar with the news or don't usually watch the news, you'll make a discovery that makes you wonder "Is that so?". Why don't you learn about the news on Saturday night with your family?

    1. Explanation from the basics of investment
    2. Mechanism of increasing money with stocks
    3. Stocks are one of the ways companies raise money
    4. Do you really understand mutual funds?

    Explanation from the basics of investing

    Many Japanese people have traditionally deposited their money in banks, and this has become a habit for many years. However, in recent years, more and more people are thinking about investing. Investing is investing current capital (money) to increase future money. Recently, there is data that the number of young people investing is increasing, and from 2022, high school home economics classes will begin teaching the basics of investing. From the perspective of household management, we decided that we should also teach people how to manage their own money in Japan, so we decided to deal with investment as well. When it comes to investing, I think that many people have a negative image, such as "if you fail, you'll get hurt" or "it's scary to get involved easily." That's true, but on the other hand, it's also true that there are people who have increased their money to some extent (some of them tremendously) through investments. "If you want to increase your money through investment, it is essential to have the right knowledge." There are various types of investment, such as stocks, real estate investment, investment trusts, NISA, iDeCo, and FX. I will explain the basics of investing, which will finally be learned in high school classes, so that even those who have not yet done so can understand it.

    How stocks make money

    The most famous of the many investments is stocks. So how can you make more money by investing in stocks? "The mechanism is extremely simple." If a company's sales increase and it is likely to make a large profit, more people will buy the company's stock, and the price of the stock will rise. Conversely, if many people think that the company will fail in management and fall into the red, the stock will be sold and the stock price will fall. A company's performance can go up and down, so if you buy when the stock price goes down and sell it when it goes up, you'll make a profit from the difference. The stock price, which is the price of each company's stock, fluctuates every day, and if you watch the movement of this stock price and trade well, you can make more money. "However, it doesn't always go well." Even though I bought the stock thinking that the stock price would rise from now on, there are times when it goes down unexpectedly. If you sell it at a lower price than you bought it for, you lose money instead of making money. You should also know that there are various rules for buying and selling stocks. Stocks cannot be bought or sold at any time, and can only be traded while the trading market is open. In Japan, in principle, the working hours are from 9:00 am to 3:00 pm (with a lunch break). Also, even if you want to sell quickly because the price has dropped, you won't be able to sell it if there are no people to buy it. While looking for a buyer, the price may continue to fall, and the loss may swell. From a different point of view, if a stock is put on the market and sold because the price is falling, it means that someone has bought it. It also means that there are people who are thinking about making money by buying stocks when prices have fallen. If you want to make money by investing in stocks, it is important to study economics and learn about the various factors that affect stock prices. In addition, it is necessary to find out what kind of work the company is doing and whether it is likely to be profitable in the future. Without knowing this, it is very risky to buy a product based on the company's name just because it looks good. In addition, holding stocks may come with benefits. This was explained in Chapter 1. Dividends and shareholder benefits. Especially if the company is profitable and growing steadily every year, shareholders can continue to receive high dividends for many years. Moreover, in that case, the stock price will rise year by year, so if you sell when the price is high, you will be buying at a low price and selling at a high price, and you will get a large amount of profit on the sale. This is the beauty of stock investment. [Next page] Stocks are one of the ways companies raise money

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    Akira Ikegami said,