“AN INVESTMENT IN KNOWLEDGE PAYS THE BEST INTEREST.” – BENJAMIN FRANKLIN
As said by Albert Einstein, “once you stop learning, you start dying”. In light of this, when investing, the value of educating oneself must not be underestimated. Achieving and
maintaining success will necessitate frequently carrying out necessary research, study and
analysis.
“I WILL TELL YOU HOW TO BECOME RICH. CLOSE THE DOORS. BE FEARFUL WHEN OTHERS ARE GREEDY. BE GREEDY WHEN OTHERS ARE FEARFUL.” – WARREN BUFFET
Significant gains will only come from stepping out of your comfort zone. Thus, as recognised by Mr Buffet, don’t be fearful of investing in a down market and exiting in a soaring market.
“THE STOCK MARKET IS FILLED WITH INDIVIDUALS WHO KNOW THE PRICE OF EVERYTHING, BUT THE VALUE OF NOTHING.” – PHILLIP FISHER
Essentially, investing without prior education and research will fundamentally lead to regrettable investment decisions. Valuable research necessitates much more than solely listening to popular opinion.
“IN INVESTING, WHAT IS COMFORTABLE IS RARELY PROFITABLE.” – ROBERT ARNOTT
Realizing significant gains will necessitate stepping out of your comfort zone. Fundamentally you must establish the boundaries of your comfort zone and familiarise yourself with stepping out of it in small doses. Although you need to know the market, knowing yourself too is essential.
“HOW MANY MILLIONAIRES DO YOU KNOW WHO HAVE BECOME WEALTHY BY INVESTING IN SAVINGS ACCOUNTS? I REST MY CASE.” – ROBERT G. ALLEN
Whilst its generally good practice to keep three to six months’ cash flow in a savings account, constrained by the presence of low interest rates, scope for gains is minimal. As such, in order to improve the chances of increasing your wealth faster than inflation, investment opportunities must be sought elsewhere.
“IT’S NOT HOW MUCH MONEY YOU MAKE, BUT HOW MUCH MONEY YOU KEEP, HOW HARD IT WORKS FOR YOU, AND HOW MANY GENERATIONS YOU KEEP IT FOR.” – ROBERT KIYOSAKI
Growing and protecting one’s investment portfolio is of paramount importance. While you could be a millionaire by the age of 30, if quickly blown this would result in a zero gain. Thus preserving money for the benefit of future generations will necessitate prudent diversification of one’s investment portfolio.
“KNOW WHAT YOU OWN, AND KNOW WHY YOU OWN IT.” – PETER LYNCH
Key to success is realising and acting upon the fact that there is no guarantee a wise holding today will remain a wise holding in the future. Carry out necessary research prior to making any investment decision, and do not underestimate the value of re- evaluating your portfolio on a timely basis.
“FINANCIAL PEACE ISN’T THE ACQUISITION OF STUFF. IT’S LEARNING TO LIVE ON LESS THAN YOU MAKE, SO YOU CAN GIVE MONEY BACK AND HAVE MONEY TO INVEST. YOU CAN’T WIN UNTIL YOU DO THIS.” – DAVE RAMSEY
Cash flow is king. Anybody who spends more money than they make will be forever chasing their tail and never attain the financial peace Mr Ramsey speaks of.
“INVESTING SHOULD BE MORE LIKE WATCHING PAINT DRY OR WATCHING GRASS GROW. IF YOU WANT EXCITEMENT, TAKE $800 AND GO TO LAS VEGAS.” – PAUL SAMUELSON
Noted by Gartman “Proper patience is needed throughout the lifecycle of the trade, at entry, while holding and exit” and thus, to remark that investing is gambling would be a misinterpretation. Investment gains over time will only be attained through planning and patience.
“YOU GET RECESSIONS; YOU HAVE STOCK MARKET DECLINES. IF YOU DON’T UNDERSTAND THAT’S GOINGTO HAPPEN, THEN YOU’RE NOT READY, YOU WON’T DO WELL IN THE MARKETS.” – PETER LYNCH
Regardless of a recession or decline, sticking to the course is of paramount importance. Undeniably economies are cyclical, however, the markets have shown that they will recover. Ultimately, you must endeavour to stay in to make sure you are part of those recoveries.
Video and article produced by Daisy Neall
