Investing 103

*** THIS IS A NON EDITED EDITION***

( too lazy)

 

Always keep time as your denominator

This will help with everything. Things need time to grow. 

Know the worth of your dollar

I'm assuming your the calculating type here and If you're starting out in investing and you want to gauge what your return should be

You may be employed or are receiving a lump sum.

Considering that you're employed then you can calculate what your per hour income is. Calculate what your return would most likely average ( this varies ) on just the cash ( without putting any time or work into it ) sitting in lets say an Index Fund or a T Bond. Now you have a benchmark to compare your performance against. Whole lotta disclosures like give it time and whatnot but I am counting on you to have common sense.

Then everything else is opportunity cost / what alternatives do I have?

Don't be afraid of going heavy into an investment - If you have a good hand bet heavy.

 

Have the ability for flexibility.

Get comfortable with investing on your own terms. Investee may be asking for 10K but you feel comfortable with 5K but are open to investing more at different times / increments (A form of Vesting). You can counter with how it would suit you.

An investment can be treated as a relationship, if it went well the first time then why not be open with working together in the future?

For an investor I wouldn't say there is a certain set of "rules" you have to follow, more like guidelines & things to watch out for. One of the strengths is creativity and that in nature sort of opposes rules.

Feel it out

I don't like saying feel it out but there is no set of proper procedure to follow that I know of, maybe Alexa knows so feel free to ask her / it / soon to be supreme overlord.

The investing that I do varies extremely; different amounts, businesses, industries, vehicles of investment, people, age, other stuff.

In the type of multi investing you can't be a stickler for how it's suppose to work but have to step back and get a feel for what's going on. 

You don't have to swing at every ball thrown at you

Compulsion to invest isn't a good thing (darn investment demons).

Investment Demon - "I want to invest!!! I'm sick of sitting on this money, give me something!"

You - "Stay back beast! The power of patience compels you!"

Being experienced in investing and understanding the subject at hand IS a good thing but if you're starting out in investing or investing in a subject you don't know well then that asset hasn't been built.. yet. That's why you would, being the smart person you are - mitigate your investments until you're more knowledgable at which point the steps to take will be right in front of your eyes. 

As Warren Buffet says, stay in your circle of competence. 

Which can be an expanding circle if you keep learning & getting learnt ( having a mistake teach you, sad but effective )!

 

Let people know you exist

You don't have to rent out a billboard but you shouldn't keep it hidden either - don't be a closet investor. It's a great profit to have people come to you in their time. 

 

 

 

 

Eddie