Some people might think that there is a formula out there on how to invest successfully. And, clearly, there is no shortage of people who claim to have one. On the other hand, there is also a list of people who have used their own investment formulas successfully.
However, the fact of the matter is that there is no one way to invest successfully. If there was, someone would sell it, wouldn’t they. The reality is that successful investing involves many different factors, including knowledge, experience, judgement, information, networking and many other variables. So, it’s not necessarily a matter of figuring out one way of how to assess all these variables, but to learn as you go along, including learning from others.
A broader view of the markets
For example, if there is perhaps one most salient point to remember when it comes to investing, it’s to focus on the long-term. As any decent investor should know by now, markets go up and down, but the value of objective-reaching portfolios usually goes up. And when we talk about long-term, sometimes we’re talking about decades. So, reading market websites on a daily basis is not the sole road to investing success. A much broader view of the markets is needed.
Another piece of wisdom to keep in mind is to stay disciplined — on a number of fronts. Sometimes investors sell or buy simply for the sake of doing something when doing nothing would have been better. Sometimes investors make decisions on whether they like a company or its owner, or not, and that’s not necessarily the best way to invest, either. This probably isn’t the first time you’ve heard this, but investing shouldn’t be an overly-emotional endeavour. It should be done with reason, calculation and patience — always.
Learning instead of reacting
These are just a few insights into how to invest successfully, but the point is that they’re just that: insights. Some investors are more aggressive, some are more patient. But they all tend to exhibit some of the traits listed above because they learn about the nature of the markets instead of reacting to them.
ASCEND GRP is an asset-management firm, with offices in Toronto, Richmond Hill, and New York, that services clients seeking investment opportunities worldwide.