Investing notes

I asked ChatGPT to write a blog post on "investing" and this is what it came up with.  I didn't read it, maybe I will read it later.  (seems to be a the human response to what a computer's output.)

Investing is the act of allocating resources, typically money, with the expectation of generating a return or profit in the future. There are many different types of investments, including stocks, bonds, real estate, and more. The goal of investing is to grow your wealth over time, and there are many strategies and approaches that can be used to achieve this.

One of the most important things to understand about investing is that it involves risk. There is no such thing as a completely risk-free investment, and it's important to understand and evaluate the risks associated with any investment opportunity before committing your resources.

Another key factor to consider when investing is diversification. This means spreading your investments across a variety of different asset classes, industries, and geographies in order to reduce your overall risk exposure. By diversifying your portfolio, you can help protect yourself against the impact of any one investment performing poorly.

Finally, it's important to have a long-term perspective when investing. While there may be short-term fluctuations and volatility in the market, successful investing is often about sticking to a sound strategy over the long term. This means staying disciplined and patient, avoiding impulsive decisions based on emotions or short-term market movements, and focusing on your long-term goals and objectives.

Overall, investing can be a powerful tool for growing your wealth and achieving your financial goals. By understanding the risks involved, diversifying your portfolio, and maintaining a long-term perspective, you can build a successful and sustainable investment strategy over time.

The key take away I have for investing is growing wealth over time.  There is not a get rich quick way, but it is amazing how much wealth can be made over time, surprisingly asking ChatGPT returned the following. And I am impressed!

Me: investing 1 dollar a day with a 3% apr how much money would there be after 20 years

ChatGPT: Investing $1 a day with a 3% annual percentage rate (APR) for 20 years would result in a significant accumulation of wealth over time. To calculate the final amount, we can use a formula for compound interest:

A = P * (1 + r/n)^(nt)

where:

A = final amount
P = principal amount (initial investment)
r = annual interest rate (as a decimal)
n = number of times the interest is compounded per year
t = number of years

Using this formula with the given information, we have:

P = $1 per day x 365 days per year x 20 years = $7,300 (principal amount)
r = 3% per year = 0.03 (annual interest rate as a decimal)
n = 365 (interest is compounded daily)
t = 20 (number of years)

Plugging in these values, we get:

A = $7,300 * (1 + 0.03/365)^(365*20)
A = $7,300 * 1.036^(7,300)
A = $7,300 * 2.154
A = $15,718.20

Therefore, investing $1 a day with a 3% APR for 20 years would result in a final amount of approximately $15,718.20. This demonstrates the power of compounding over time, and underscores the importance of starting to invest early and consistently to achieve your financial goals.

In 20 years you more than double your money!