How to Determine the Right Investment (My Toastmasters Speech Project No. 2)


This is a script for my Project Speech No. 2 that I delivered on December 6, 2013 at Al Liwan Suites during the fourth regular meeting of PICE-Qatar Toastmasters Club. This time, I was not able to use the Word of the Day and I exceeded with the time limit of seven minutes.  However, our General Evaluator of the day mentioned that I accomplished the objective of this speech which is to Organize your Speech.

How to Determine the Right Investment

Money is hard to earn and easy to lose, guard yours with care.

Mr. Toastmaster of the Day, fellow toastmasters and honored guests, a pleasant afternoon!

Am I right to say that we are all here in Qatar to work hard for money?

Is there anyone here who came here in Qatar not because of earning money?

But why do we need money?

The most common reasons for us are to fund the education of our children, to buy our own house, to buy a new car, to fund a dream vacation like a Europe tour or a Carribean cruise.  What else? To buy a luxury items, gold, diamonds or a latest gadget.

With all of these expensive dreams, have you ever thought of saving some of your money for your retirement? 

With the high cost of everyday expenses, it is so difficult to save right?

That is why we want to keep our savings in an investment that could beat inflation and boost the return of our savings.

With lots of offers and opportunities, it is very difficult to know which investment is the best.

Today I will discuss to you how to properly analyze the best investment opportunities.

I will tell you four criteria to consider and you will know what questions to ask, what things to look out for and things to avoid completely.

The first of these criteria is

  1. Security – we should know what is the level of security of this investment, meaning we want to know how safe our money will be if we invest in a particular investment specially if you have a small portfolio size.  We should be aware how much risk is involved in an investment.  A savings and time deposit are considerably safe investments while mutual fund and stocks have a higher risk involve.  But if you will invest your money in a stock market and the market falls down do you think you could still sleep soundly at night?
  2. Liquidity – It refers to how much access do you have on your money when you did the investment? If you will buy a piece of land as an investment with a forecast that it will increase in value.  Can you immediately sell this piece of land when you realized that something goes wrong in your investment?  Or you will be force to sell it a discount?  Savings accounts and time deposits are generally liquid because it can be withdrawn anytime.  You can easily sell your stocks at the current market rate but how much was it when you bought the shares? That is liquidity.
  3. Velocity – How fast can you take your money back with its earnings so that you can put that money to a new investment and acquire more assets that can produce more cashflow and achieve financial freedom faster.
  4. Profitability – meaning we want to know what is the projected return of investment over the period of time.  How much we are expected to earn, when we are expected to earn it and how soon we ware we able to get that money.

So that is how simple it is and as a quick review, the first criteria is to determine the security of that investment, meaning how safe is that money.  The second is to determine the liquidity meaning how much access to we have to it.  The third is velocity meaning we need to determine how quick we can get that money back.  And lastly, we want to determine the profitability meaning we want to know how much we are expecting to earn from that investment.

I hope this would help you in determining the right investment when an opportunity comes.

Back to you, Mr. Toastmaster!