Friday, November 26, 2021

How to invest - part 1. Preparation - What (Part 1)

My framework of investing is by no means novel or something groundbreaking. In fact, it is an amalgamation of what I have picked up, learned from, mentored by, and crucially, blessed enough to do the actual investing and failing well, so that I can learn from and get better. 

The concepts I accepted as info and is now my knowledge, can also be your knowledge too. If I can, you can too. Rather, if you want to, you can too. Don't let the inner and outside voices talk you out of what you feel and believe to be true for you. It is your life ans you only have one life. Live it to the best that you can without bringing hurt to others - my moto anyway hehe. 

Right, my investing way is something I would call The Fisherman. Why? Because like preparing to go fish, you do the bulk of the work in the beginning, relax during most of the time and only do or two things when the fish takes the bait. 

So, we can break it down into 3 parts:
A. Preparation 
B. Relaxation
C. Catch

Preparation, as the name implies, involves doing the groundwork and homework about the company you want to invest in. 

In fishing, before we head out to the pier, we'll go get bait, prepare the rods and hooks, get the chairs, some snacks and pack in something to pass the time while waiting for the fish to take the bait. 

In investing, before we even think about what price to pay, the first thing we gotta do is find out what the company does to make money - what products does it sell or what service does it provide and what is unique about it, what does it do which it's competitors do not, what does it have that its competitors do not. 

The goal here, is to form an investing statement which will act as the fishing rod. The investing statement should detail what does this company do that is special to you which makes you believe in it, and if you believe (you should be, after all) this company has a bright future ahead, why so and what would cause that future to not materialize ?

To do this, first hit up YouTube for vids/explainers about the company.  Chances are someone would have covered this great opportunity of yours. Don't fret that potentially many other investors would be in the know about this company you have taken a liking to. It is not the knowledge that makes you money but what you do with it!

To be Continued..

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