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As a busy entrepreneur, you know that your time is extremely valuable. Why should you take time away from your business to focus on investing? Investing not only protects the money you’ve worked hard to earn; it also helps it grow and compound over time. If you want to do something really well, focus on mastering the fundamentals first.
In this article, we will discuss three foundational strategies you are already applying within your business to excel in investing. Whether you’re investing in gold, cryptocurrency, real estate or stocks, these three tips could change your investing strategy. Let’s dive right into it!
Related: Want to Make More Lucrative Investments? Follow These 3 Simple Steps
1. Ignite your portfolio with purpose
In business, everything begins with a vision. Let’s shine a light on Michael Jordan for a second. When he was asked what the number one factor to his success was, people guessed practice, hard work and luck. His actual response to that question was: “It’s an amazing thing about passion. If you love something, if you have a strong passion for something, you would go to the extreme to try to understand it or try to get it.”
Think back to when you started your business. More than likely, you were highly encouraged to pick something that genuinely excited you. This grandiose vision and enthusiasm probably made it easier to navigate through tough times and keep your eyes on the end goal.
Now, let’s apply this to investing. Are you just chasing random stocks you don’t know about because everyone else is doing it? Are you actually interested in it? Do you truly see and believe in what you’re investing in?
If things were to go south tomorrow, would your faith in the long-term vision stand firm? Having a strong vision and being enthusiastic about what you’re investing in is a key business strategy you can apply right now to elevate your investing game. You probably won’t feel the effects of this right away, but you will notice a significant difference when bumps are encountered in the road.
2. Align your gut with solid data
Gut feelings are important. As an entrepreneur, you know this. It would be nice to immediately act on our feelings, but it is important that they are backed up by some sort of relevant data. This is especially true when it comes to investing. It’s okay to get emotionally invested in an idea or company, but if the numbers don’t add up, you need to rethink your strategy.
Imagine you’re considering investing in a business that’s doing good for the world — donating a portion of profits to charity, for instance. It sounds great, and it might give you the warm fuzzies, but if the financials don’t make sense, that business won’t last. In the end, emotions are a great starting point, but it’s the data that will guide you to the right decision, ensuring that your investments not only feel good but also perform well.
3. Adapt, evolve and thrive in the new age of investing
In the fast-paced world of business, it is not the biggest, the strongest, or the richest that survives. It’s often the fastest, the most open-minded, and the most adaptable that wins in the long run. The same can be said for investing.
The investment landscape is constantly changing, especially with emerging trends like artificial intelligence, remote work, alternative foods, health tech and green energy. You don’t need to be the first to jump on every new bandwagon, but you do need to stay informed and be ready to pivot when the opportunity presents itself.
Take a look at history. Since the beginning of time, great fortunes have been gained or lost through the various trend cycles. This includes trends in civilizations, weather, food, technology and health.
Those who can spot and adapt to trends early—whether in business or investing — reap the biggest rewards.
Related: Want to Build an Impressive Investment Portfolio? Here’s What You Need to Know.
Final words
As entrepreneurs, you already possess the mindset and skills needed to succeed in investing. The strategies that have helped you build a thriving business. Having passion, staying data driven, and adapting to the trends are the same ones that can make you a successful investor.
As stated at the beginning of this article, it’s not the fancy gadgets, software or strategies that make you successful. Success comes from understanding and applying the essentials until they are mastered.
When you combine the fundamentals of vision, data and keeping up with the trends, you’ll build a portfolio that’s not only strong but also a portfolio that’s resilient, just like your business.
Source : Entrepreneur.com