Your Investment Goals will decide how much successful you can be.

 

11^th March 2021

Your Investment Goals will decide how much successful you can be.

Dear Fellow Travelers,

Namaste! Our last two posts in Desire / Decision / Determination and Decades have invoked a very strong response and readers have liked the same. Many readers have asked how come their desire is not getting converted into Determination or Decades? This is a very logical question and I will deal with the same in today’s post.

Let me ask you what is/are your investment goals?

Common answers could be…

1.  To earn some extra money each month.

2.  To pay the EMI of FLAT or Some Loans.

3.  To plan for Children's Education or Marriage.

4.  To plan for Retirement.

5.  I just enjoy the trading

6.  To create wealth for myself and my generations.

If you have any of the above goals or desires – congratulate yourself. You are intelligent and smart. You have all chances of reaching your goals. I am sure you must be trying for the same in your own way towards the same.

What is the major negative in the above goals?

If you look at all the goals with peace of mind – you will realize that the above goals are of RECURRING NATURE. You need to work on them continuously. You must keep on repeating what you have done to maintain your income going forward. It means – you will get bored someday or you will have chances of making some of the other mistakes and those mistakes may change your calculations going forward.

Another major flow when goals are recurring type – you can’t fall in love with them. In a typical marriage – partners take a vow to stay together for a lifetime and they take each other for granted. The initial element of Romance / Love is replaced by Duty / Social Responsibilities and other routine matters. The same things happen in a job. He lives month to month. Feels happy on promotion day and salary rise day.  No other happiness in life.

The point is when you plan anything with intelligence – you end up being routine/boring. Look at your electronic gazettes / your AI equipment. They are a really intelligent way of managing life – but users get fad up really very fast. They want something new each year or when new products are introduced.

How is the behaviour when you deal with routine matters?

One will try to save as much money as possible. He will google it. He will bargain with the suppliers and things like that. He will not take much pain when doing it or buying it. When this kind of person does investments for the above-mentioned goals – he does not want to take much pain. He goes by tips or market news or generally accepted understanding.

How many of you have read your insurance policy document word to word? How many of you read the broker-client agreement or mutual fund risk announcements while opening a new trading account or investing in Mutual Funds? How many of you have read your property agreement word to word, in case, you have bought it in recent years?

The point is simple – work done with intelligence will not take you very far in life and investments.

What is the Way of Buffett?

Buffett is not intelligent when he talks about investments. He is WISE. His approach is the approach of Wisdom. He does a lot of work before investing in any company. But once he is done – there is no recurring work except seeing the yearly numbers and monitoring the performance. He does not want to create wealth!! He knows if he has chosen the proper company and invested a reasonable amount – regular income and wealth creation will happen on their own. In fact, that has happened for him by default. He didn’t plan for them!!  

He invests for a lifetime. He also changes his portfolio but his core stocks are still the same in the last 40 years. A lot of thought process and pain is taken when the investment is done.

Buffett operates for Financial Nirvana. He doesn’t want to take recurring actions. When he picks up a new company – he looks at it with a love at first sight kind of attitude. The way a lover takes all the pains for his beloved during his courtship period without getting bored or angry – he will take all the pains before investing in the new company. This way he remains always FRESH.

How to change your Focus?

Instead of becoming Intelligent focus on Wisdom. Wisdom leads to Win-Win situations. This brings HARMONY to your life. Intelligent people try for WIN-LOSE situations. They want to win and others should lose. Since everyone is trying for WIN-LOSE situations – you will not get many bargains in life and investments.  

What NEXT?

Being smart and intelligent is Good. All are trying to do that. But being Wise is the best. Few are able to comprehend the same. Go towards it. Take your call.

Happy Investing.

Follow me on Twitter @hiteshmparikh and join me on WhatsApp on +91 986 942 5399.

 

Live With Passion…. Invest With Passion.

 

 

Hitesh Parikh