How to Evaluate Your Investment Decisions?

Evaluating your investment decisions is like checking if your toy box is full of good toys or just junk.

Investment decisions are choices you make about where to put your money, kind of like picking which toys to keep in your favorite spot in the toy box. To see if those choices were smart, you need to look at how well they did over time.

Imagine you saved up 10 cookies to buy a new game. If that game lets you win more cookies later, it was a good choice. But if it just made you sad and didn’t help you get any more cookies, maybe you should try another game next time.

Think of the money you spend like the number of cookies you give up to buy something. If your new toy costs 5 cookies but gives you back 10 later, that’s a win. But if it only gives you back 3, maybe you should save those cookies for another toy.

You can always try again, and sometimes the best toys come from trying different games!