The word “Investment” can mean different things. If you trace back its origins, you will find it comes from a Latin phrase “vestis” which translates into “garment”. If you look a little closer at the phrase, you find its actually referring to putting money into one’s pockets. When we invest our time, money and recourses, sometimes we are just making a shot in the dark in hopes of a big-time pay off. But of course there are risks when you take shots in the dark. Sometimes there’s a hint of something spectacular that just ends up blowing up in your face. Let’s talk about the two ways to go about an investment.
One way is called a ‘Real Investment’, which means you actually get something tangible like a car or home. The other way to go about it is to get your hands on ‘Financial Assets’. This refers to money in a bank, or stock market shares, that you can sell and trade as you please.
When it comes to the investor’s point of view, the thing you really need to pay attention to is the ‘recovery’ of your investment. This makes the difference between making money, or going broke.
So how do you find the right balance to ensure a great return? The trick is to be able to sort out and pick assets that have the best probability of success. But beware, even some of the best laid out plans can fall flat due to undesirable circumstances that are beyond the investor’s control. It’s an investor’s ability to analyze their situation and take a calculated risk that makes the difference when it comes to success.
One often hears or reads about investment guaranteeing immediate results. I would add that to redundancy in wording. A key in investing is patience and persistence. One cannot expect his input to immediately produce returns. A parallel can be drawn between the lives of an investor and a mosquito. One cannot expect returns too soon; even a mosquito doesn’t get a pat on the back until he’s nearly completed his task.
During the course of writing this article, some research on the internet led me to many sites that gave tips on successful investing. Kind of surprising is it not that with such potent advice available you don’t find as many Ambanis or Donald Trumps walking down the road. The real reason is that you do not become a successful investor by reading about how to become one, but by going out there and developing this intuitive feel to the ground reality. Technology is growing by leaps and bounds and this will only enhance your ability to keep in touch with your investments. But it is the discretion of the investor whether he adapts to this technology and raises the bar just that little bit more for his competition.
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Tags: business, finance, investing, investments, money, stock market
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