the art of investing
Returns are product of risks. Investment risks are easy to decipher, human perception of risks vary significantly. This is because our core values differ. Yet, some risks are worth taking, some are not. The art of investing is to recognize & calibrate risks in a way that it sits well within your investment philosophy.
If you’re unfamiliar with your investment philosophy here’s a good place to start;
An investment decision is motivated in one or more ways by intentions
The decision-making is simple when the intentions are clear, it gets harder when there is ambiguity. Ambiguity arises when intentions clash with your values. Recognizing what matters to you creates your own little hierarchy of values. This act of prioritization based on a value system weaves together an investment philosophy.
Recognise and address your biases to develop a strategic approach
- Know your biases – Every financial personality has its mainstays and quirks. Our biases are often rooted in past experiences, cultural influences, and societal norms. Find ways to work around your shortcomings. The key is to develop self-awareness. Do not resist or deny these quirks instead recognise and address your biases to develop a strategic approach. Few ways to approach this include pushing the boundaries of your beliefs, seeking out diverse perspectives and embracing & learning from mistakes to make informed choices. These things empower decisions to be aligned with your values. Second
Money isn’t an entity. Money as a tool isn’t good or bad, it’s inherently neutral. Investment decisions often overlook the aspect of “Self.”
No investment is intrinsically bad, it’s uninformed choices driven by misplaced values that impedes your financial well-being. Forge a friendly and harmonious bond with money and you’ll be able to build and live a life in line with your core values. Nurturing a meaningful relationship with money starts when you refuse to use it as metric for success. This means, achieving financial freedom isn’t nearly as important as defining it.
As guides, we familiarize you with your own financial personality by drawing upon your past investments, current landscape, and future needs. The endeavour is to get you to make informed investment decisions based on logic devoid of rules and emotions. We’ll help you recognize & get past perceived risks that may arise out of your own blind spots. On your investment journey with us, you come to not only appreciate uncertainty but embrace it as on opportunity.