As with any new job or career, there is a period of learning. This may involve shadowing someone or being mentored by a person that has the relevant experience and expertise. This is no different from the world of investing. The key question to ask of oneself is, “why am I doing this and why do I need to do this?”
Your “Why” is the most fundamental and basic requirement in starting into the world of investing. For me it was aptly said by Steve Jobs in an extract of his commencement speech at Stanford University, prior to his passing:
“Your time is limited, so don’t waste it living someone else’s life. Don’t be trapped by dogma which is living with the results of other people’s thinking. Don’t let the noise of other’s opinions drown out your own inner voice. And most important, have the courage to follow your heart and intuition. They somehow already know what you truly want to become. Everything else is secondary.”
For me, it is about becoming financially free. To take charge of my own financial future and create what and how I would like it to be. I was always interested to know how some people had more money than others, what mindset did they possess, how did they achieve financial success and get whatever they wanted? It still fascinates me to this day but what I discovered was that they created it. They spent endless hours learning, developing, and growing themselves to achieve great success. What is your vision?
I subsequently started learning by attending courses and training in personal development workshops, priming and growing myself to adopt a new way of thinking. My new way of thinking empowered me to believe in myself and instead of hard work, to focus on what lifestyle I wished to create. What is important to me and my family and how can I grow our wealth and turn it into generational wealth?
I learned from the experts in the field of investing, the importance of imagination, focus, flow, discipline, optimisation, relationships, and many other important connections. I start to focus all my energies on my values, drilling down to what I am most passionate about. These values I can call upon with command, to tackle any seeming problem that I have, not just in business but in any area of my life.
My initial success was in property development, learning how to buy property the right way, rent it out and make a profit. I have continued this and continue to grow the portfolio. My next consideration was in diversification as I learned from Ray Dalio, who said, “Diversifying well is the most important thing you need to do in order to invest well. If the economy tanks, a natural disaster was to hit, or the political system went into turmoil- one could lose everything- money, assets, and possibly even one’s freedom. There is a risk of holding all one’s assets and investments in one asset class. Instead, the option is to spread them in different areas, like property, alternative investments, bonds, shares, commodities, etc. This further assists in improving one’s risk-return ratio in generating wealth, as each investment behaves differently in different market conditions, but by mixing them appropriately, one can reduce risk exposure.”
This led to discovering alternative ways of investing. I currently invest across different classes with passive investments in Movies, Tech start-ups, Manufacturing, RoRo shipping, Green technology, whiskey, gold and silver, Fintech, and property development projects. What is great about these investments is that they did not involve me to be actively involved. I could continue enjoying creating new possibilities whist my money worked 24/7 365 days a year.
Further, one would need to consider critical questions, such as, what is my risk profile, which underpins one’s investment strategy and decision making. What do I want to achieve, why is it important to me and how do I go about achieving that? Where do I find the right investment/s that suits my strategy? What is my potential return on investment? What is the ideal time period of my investment, should it be 1 year, 2 years, or longer? Are there any underlying securities that protect my investment? What are other considerations that I should be aware of?
As with a lot of things, hindsight is a wonderful thing.
- Steve Jobs.