Three Questions You Must Answer Yourself Before You Invest in 2014

January 11, 2014

Three Questions You Must Answer Yourself Before You Invest in 2014

Greetings from Hitesh! The year has started with a good corporate result. While the things get positive you may be tempted to invest. However, we have set of just three questions, we suggest, you must ask yourself before you plunge.

My coach Anthony Robbins always says…. “Wrong questions lead to the wrong answers”. Most of the guys before joining me always ask one question - How much money I can make by joining your services? My favorite answer is “Zero”. There can not be a right answer for wrong question. You do not have unlimited capital…..so you can not make unlimited money.

What could be the right question? Suppose somebody asks…. “I need Rs.25 lakhs for my daughter’s marriage after 5 years…..I have Rs.10 lakhs now. Do you think with your expertise…I can make Rs.25 lakhs after 5 years?”

In the above question….he has told me four things. Why he is investing? How long he can stay invested? How much he can invest? 

What is his expectation about return?

If you study the same…following things become clear.

1. Strong Emotional Purpose:- He wants to invest for his daughter’s Marriage. Investors without strong emotional purpose generally do not stay long in the market.

2. Clear Target:- He is clear about what he wants. He wants Rs.25 lakhs. If you do not have clarity of the target, you can not meet your purpose.

3. Time Limit:- He wants the results in 5 years……any target without time is just a wish. If you want to do on “Someday”….then that someday will never come, unless you decide which day is “someday” for you?

My answer in such a case is categorical - Yes.  In short you must have purpose, target and time before you do anything. If you have clarity in these areas….I assure, you will not regret joining us.

The purpose of this article is something else…..I wanted to deal with three important questions which you must ask before you invest in 2014. Here they go…

1. If you are eating Chapati / Vegetables / Dal / Rice in your daily food….Will you wish for higher or lower prices of them?

2. If you use a car for your daily transportations….will you prefer higher or lower price of Petrol/Diesel/Gas?

I am sure you all will prefer Lower Prices. Now the most difficult one…..

3. If you are going to be a net saver for the coming 5 years…..will you prefer higher or lower stock prices?

Most investors fail here. Most investors are going to be net savers for the years to come…so, if stock prices remain steady, they can buy more of the stocks with their savings!! But they feel happy when the prices move up!!

If you read the three questions and register your answers again….you will come to know irrationality in your thought process. Irrational thoughts can never lead to super success.

How I made great money?

Let me share my success story.

I have been investing in HCL tech from 2007….from Rs.300 to till this June 2013. When all other companies shares prices was moving up…HCL was going nowhere from 2007 to 2013.

However, rather than the price, my concentration was on the performance…it was registering better results quarter over quarter. This was giving me a much needed confidence to stay invested and keep accumulating the same. From Rs.700 in June….it has touched Rs.1300 now!! We had asked our free subscribers to buy the same at Rs.750….in July 2013.

Now, Tom, Dick and Harry of the media are taking about Rs.1500 plus target!! If you invest based on their advice….you have Rs.200 upside and Rs.700 downside!! Will you invest now?

I made 20% plus CAGR in above case…..I got an opportunity to invest my saving every year in this company without much increase in prices.

My Personal Call:-

If your answer is the YES of the above three questions and if you have the purpose, target and time limit for your investments…..I suggest you take advantage of our expertise and join us.

I wish you Great Sunday and Happy Family Time.

You can follow me @hiteshmparikh on twitter or on Whatsapp on +91-9869425399.

Live With Passion…Invest With Passion.

Hitesh Parikh.