Investing isn’t easy and it takes real talent to build fortunes. It is obvious to be mesmerized by great people in this world who made their investment work for them. We bring you the success mantra’s of investment from such superheroes of wealth creation.
Our investment starts from our ability to save and invest. Good investors always follow the habit of saving and earmarking funds for investment. The well renowned Investment wizard, Peter Lynch, said, “In the long run, it’s not just how much money you make that will determine your future prosperity. It’s how much of that money you put to work by saving it and investing it.” Consistency is the key to success – a small amount invested today will yield high returns in long term through compounding.
Though, market analysis and opinions are available widely, but to make a choice between right or wrong decision comes from your own wisdom. As Benjamin Franklin said, “An investment in knowledge pays the best interest.”
You may require patience to learn the investment skills, but it isn’t rocket science that only few can learn. Learning how to invest is as simple as driving a car – you need to get the basics right. Even if you are not an expert, you must know the investment language to ensure that you are not misled.
There is no better strategy than making long term investments into fundamentally strong stocks. Always make a pick based on the value a company can deliver in long run.
Warren Buffett suggests, “Only buy something that you’d be perfectly happy to hold if the market shuts down for 10 years.” It allows you to hedge your risks against volatility and market fluctuations, and always pays you off in long run.
We often try to borrow loans and make investments at same time, and striking the right balance is always a difficult choice. Dave Ramsey’s advice comes handy here – “I would not pre-pay. I would invest instead and let the investments cover it.”
Always, remember to pay off all high interest debts such as credit card, personal loan etc. as early as possible and cover the low interest debt through your high interest investment gains. If you make the wrong choice, your debts could erode your investments.
Investment is not a skill that only a few can learn. It is about making an extra effort and remaining patient, consistent, and logical at all times. Few fundamentals of investments could open your doors to a fortune. But do not forget what Paul Samuelson said once – “Investing should be like watching paint dry or watching grass grow. If you want excitement…go to Las Vegas.” Be an investor, not a speculator.