- Investing is like planting a seed with the expectation that the plant will bear more fruit in the future. So we can see here that for you to reap something in the future you have to plant something today. We also see that seeds should be planted and not eaten, so be weary of eating your seeds. So what should we plant today? We can plant our time, energy, resources, and money into worthy causes that promise a positive return in the future.
- Great investors have a compelling vision of the future they wish to see. They can clearly see the things they wish to have, to do, and to become. They firmly hold onto this mental image with faith, purpose, and thanksgiving that they already possess that which they dream of. They have a firm belief that they will achieve what they dream of and actively pursue it.
- It is best to invest in things in which you have reasonable competence. A good chicken farmer knows all there is to know about chicken. He knows the different breeds, the feeds, the diseases, the markets, etc. A good chicken farmer knows the production cost of each egg and knows the margins on each truckload of eggs. He knows where to get working capital and where to sell his chicken to get the highest return.
- A good investor is patient. She knows that you can’t plant and harvest on the same day. Each seed has its own gestation period before it bears fruit. Patience is a tool for the good investor and he uses it gladly. A great investor is willing to wait for a very long time to earn a return on his investment.
- Good investors know how to read the seasons. They know when to plant and when to hold off. They know when to harvest and which crop to plant in which season. They know that some seasons are good and some are bad. They know what to do and not to do in the different seasons of life.
- Good investment is about trying to earn the highest return for the lowest risk. A good investor knows the risk/return characteristics of the things they invest in. They know their risk tolerance and only make bets when the return is acceptable for a certain level of risk. A great investor is not blindly looking for the highest return irrespective of the risk. On the contrary good investors really fear losing money and they will do everything to avoid a permanent loss of capital. They are not afraid of standing still on the sidelines as their peers make money in seemingly ill-advised gambles.
- Great investors don’t put all their eggs in one basket. This is the holy grail of investment. Good investors diversify their holdings for they do not know which will work out or whether all will do equally well. They are busy with one thing during the day and in the evening their hands are not idle.
- Good investors are learning machines. They are constantly looking for new opportunities by learning about new trades and things that can make them more money. They are good listeners and readers. They are good observers of the markets and make quick judgments of where things are headed so they can profit early.
- Good investors are excellent problem solvers. Once they plant a seed they immediately begin to prepare to protect the young plant. They water it, weed it, and remove pests. When the sun is scorching the young plant they put a shade over the plant. When the wind bends the plant they reinforce it with a stick. When disease attacks the plant, they spray it. When the plant dies, they replace it. Good investors know that they will be assaulted with all sorts of problems but they press on nonetheless.
- Great investors reap their harvest with joy. They are not afraid of what other people will say about their newfound wealth. They will dine at nice places, travel to far places, drive nice cars, attend fancy concerts, and shower their loved ones with the comforts of life. They will gladly enjoy the fine things life has to offer.
- The best investors are the most generous ones. They share their newfound wealth with others. They empower and give more life to everyone they deal with. They teach and encourage others how to acquire wealth. By giving away a part of their wealth, the universe reciprocates by giving them even more riches and opportunities.
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