Prof. (FH) Dr. Galkiewicz explains how investing can be fun

How does investing work if you have no prior knowledge? Prof. (FH) Dr. Dominika Galkiewicz, professor of finance, accounting and auditing at the FH Kufstein Tirol, shows how it is done. In her new book FINANZBILDUNG FÜR ALLE (Financial Education for Everyone), she explains how beginners of all ages can discover the world of investing for themselves. She shows ways in which dealing with investment options can be not only understandable but also exciting.

“The book is aimed at readers of all ages – from schoolchildren to pensioners with little economic education,” says Galkiewicz, describing the target group. Their aim is to present complex, financial content in such a way that it is comprehensible even without prior knowledge. The goal is ”to make dealing with the topic of investing fun and as easy as possible.”

A PERSONAL MOTIVATION – AND EYE-OPENING MOMENTS WHEN WRITING

The idea for the book also came to the professor through her children, to whom she wants to pass on this basic knowledge. “It helps me when I write. It helps me simplify things so that I can explain them.” She was particularly keen to simplify financial concepts so that they would be easy to grasp. For example, instead of working with many risk classes, she decided on three – low, medium and high. “This way, I make sure that I don't lose readers along the way,” says Galkiewicz. 

And she adds: “Every person often invests in several forms of investment at the same time in order to reduce their overall risk – the keyword here is diversification – and over the course of a lifetime, a person's risk preferences and forms of investment can change significantly.” “It is important to know what suits me,” Galkiewicz clarifies.

VERSATILE CONTENT EXPLAINED IN AN UNDERSTANDABLE WAY

The book covers a wide range of investment options, including everything from bank account interest rates and government bonds to gold, other commodities, real estate, and tangible assets  such as watches and real estate, as well as corporate bonds, stocks, and exchange-traded funds (ETFs). Cryptocurrencies such as Bitcoin and Ethereum are also discussed – with a focus on opportunities and risks. “I consciously avoid too many technical terms and formulas, as well as detailed knowledge,” explains Galkiewicz, who had one thing in mind when writing: not to overwhelm readers – on a topic that is difficult and emotionally charged anyway. 

What is particularly exciting, she explains, is the development of returns in various asset classes. Many risky stocks from Germany (DAX) and Austria (ATX) achieve returns of only three to four percent in both the short and long term – a figure that is below that of low-risk government bonds and barely above the interest rates for fixed-term deposit accounts.

The situation is quite different for gold: everyone is talking about the precious metal at the moment, which achieves an average return of up to ten percent per year in the long term – at a medium risk. However, the right time to enter the market is crucial for investment success. This is because gold is considered a safe haven in geopolitically uncertain times and therefore remains a sought-after investment with stable performance.

MISUNDERSTANDINGS AND NEW PERSPECTIVES

Another aim of the book is to dispel misunderstandings. Personal financial decisions are complex, and even experts cannot make reliable forecasts in a fast-moving market environment. “Just half a year ago, it was said that the strength of the DAX was mainly due to export activity in Germany and was based on developments in the US markets,” says the author. Today, the situation is different: defense stocks are driving the DAX, while the US stock markets are suffering from the president's tariff decisions.

According to Galkiewicz, picking the right stocks remains challenging, especially for inexperienced investors. However, medium- to long-term investments in broadly diversified ETFs (exchange-traded funds) almost always pay off. “If you're not an expert, you should only invest in assets that you understand and whose fluctuations don't unsettle you,” advises Galkiewicz.

When it comes to cryptocurrencies, Galkiewicz's main aim is to impart knowledge rather than pass judgment. In her book, she analyzes the development of Bitcoin, Ethereum and Dogecoin, pointing out the high price volatility of these forms of investment. She also points out that the future of blockchain technology is uncertain, especially in view of quantum computers and central bank digital currencies (CBDC). The latter are in competition with cryptocurrencies. Nevertheless, she admits that she would invest even a small portion of her assets in Bitcoin – “out of curiosity”.

CONCLUSION

With her book, Prof. (FH) Dr. Galkiewicz shows that investing does not have to be a privilege. It is an invitation to everyone to venture into the world of investments – in a simple, understandable way and with the joy of discovery.