My basic understanding of investment

I remembered that I used to read a book called Rich Dad Poor Dad. If beginners of investment find it challenging to understand Warren Buffett's ideas at the moment, they can read this book. My basic understanding of investment seems to be similar to that in this book.

Suppose I have 10,000 dollars of spare money, that means the money that I will not need for a while, then what should I do with it? I may have the following choices:

1.Dig a hole under the bed and bury it -- 20 years later, it will still be 10,000.

2.Deposit in the banks or buy treasury bonds. Suppose the average interest rate is 6% -- 20 years later, it will be about 32,000 or more.

3.Invest in S&''''P500. The average annual return in the past century is about 9% -- 20 years later, it will be about 56,000.

So as long as I can find any investment with an annual profit return of more than or equal to 9%, I will consider investing.

The problem is that there is absolutely no risk in earning the interest, while the investment may make you suffer losses. So the risk is the first consideration for the decision of whether to invest or not.

You invest in what you know well, and the most important thing about it is that you can see where the risks are.

Usually, different people invest in different investment targets because they know different things. There is no difference between the better ones and the worse ones, but the short-term or even long-term profit returns may be different. For those who don't know about enterprises and investments, it will be good to invest in S&''''P500 when it is low.

Anyway, I think the most important investment in life is to invest in education.