Quick, how many rings does Lebron James have? How many does Kobe have? How many passing yards did Drew Brees have on? What’s the interest rate on your savings account? How much are your credit cards charging you in interest? (Key Takeaway – You want to be more versed in your personal monetary numbers than Lebron’s winning percentage.)
Michael Douglas in Wall Street, said, “The most valuable commodity I know of is information.” Information is the crux of investing, and to properly invest the two best things you can do in order to consistently win are 1) develop a complete solid plan, and 2) always do your own research.
When putting your money to work, it’s absolutely essential to know as much as possible about your investment, whether it’s a property, stocks, bonds, a business or a car loan. The best way to fully understand your investment is to take time to set goals and ask yourself questions such as:
•Why am I investing? – To generate profit? To protect wealth? To secure my future?
•What is my investment target? – What’s my best case scenario? Worst? Base? (statistically the difference between best and worst case scenarios)
•What is my exit strategy? – Is this a short term investment? Long term? How will I exit if things go haywire?
•What is my risk profile? – How much risk am I looking to take? Knowing that risk and reward are highly correlated, how much am I willing to lose?
Why trust someone who has no motive in protecting your interest? Similarly, why follow an investing trend simply because it seems popular? I cannot stress enough how good research and credible information is crucial in making good investments. Too many follow the hot uptrend only to get ruthlessly crushed in the downtrend. How much do you know about your investment? Any recent news involving mortgage rates? Any recent legislation involving your industry of interest? Any recent lawsuits against the company you’re about to furnish with your life savings?
To ensure your investments are profitable, you must develop an aggressive “I-want-to-see-it-for-myself ’ attitude. Remember that everything involving your money is an investment! From your checking account to your car loan to the stock trading platform you use to the start-up company you’re financially supporting. Learn to ask yourself questions about what you’re doing, why you’re doing it, and how you will succeed. Answer all your questions before you dish out the cash.
Do all your homework. I view blind investing as throwing money out of a plane over the middle of the Pacific Ocean. While you won’t always reach your goals in your investing, at least give yourself a chance to win. The major difference between winners and losers is information. Losers hop on the “winning bandwagon” a fully existent misnomer of a phenomenon that generally sobers investors painfully and in rapid fashion. On the other hand proven winners use all their resources to gather all possible information and knowledge before forming an educated opinion and making an informed decision.
Take a trip into the world of fine dining and tantalize your taste buds with flavors from around the world.
Imagine Greece, Japan, and France at the tips of your lips. The thought alone may be enough to work up an appetite but fortunately there is a restaurant waiting to fulfill your culinary fantasy. These restaurants are not only praised for being some of the most expensive, but the menu and experience itself personifies the term ‘culinary art’.