Can you become a successful investor? Can it be your full time career? Let’s take a look at it
Future planning is an important ingredient for successful life. The more detailed the future planning is, the more easier your path towards success gets. For past few months, I have made it a habit to do the future planning and tracking my progress on regular basis. It has helped me a lot in my journey of life.
The toughest thing about future planning is writing it on paper. It’s quite too easy to talk. However, when we begin to write the same, we face numerous hurdles. Yes, we struggle in the beginning. Gladly, the process gets easier every subsequent times.
Yesterday night, we (my wife and me) sat down to analyse our progress and to make some changes in the plans. Our main objective was to find out how we can gain accelerated growth over next couple of years. Currently we are invested into equity shares and we are garnering excellent returns. However, we wanted to find out opportunities which can give us better returns than equity shares and is risk marginal low risk.
During our search we reached to different options. Let me share them with you.
A) Starting our own brand of clothing and selling the goods so produced online as well as offline. This process can pay really well. Especially when you target a particular segment and produce your clothing in line with some broad objective. In our case we had the objective of coming ahead with Indian ladies kutis which won’t lose their colours so easily.
B) starting a hotel or delivery based food business. This business requires medium investment. However, there are quite too many factors that decide the success. You should have good offerings in menu at reasonable prices; you need to take care of hygiene at utmost level; the locality of restaurant should be good etc.
C) starting a tour’s and travels business. This business needs medium level of investment along with experience. This sector is very competitive and full of risk.
Thus, we took different options and found that we didn’t like any of them. Thus we decided that for time being we won’t venture into any different business. We can keep up with investing in domestic equity, bonds, debuntures.
What are the challenges underlying this option?
A) its a sector riddled with risks. The share market is a risky place. It is dependent on quite a lot of factors like geopolitical issues, weather, different reports and all.
B) uncertainty of returns – no one can predict the returns of share market.
C) one wrong advice can ruin you. You need to study on your own.
In spite of all this. We decided to take investing as our long term business. Here’s what we thought about it.
1) we will not invest to get reach overnight. Instead our focus and target will be sustainable wealth creation. Shares market is a good place to accumulate wealth over long time.
2) we will not venture into small cap shares. These shares are high on returns and risk. We will avoid them. Instead we will trade in mid caps and large caps.
3) we will not be greedy. We are satisfied with 5 to 10% growth.
4) we will not follow any advisory. The reason, no one knows the share market.
5) shares market isn’t gambling. So, we will not gamble on shares. Instead we will study each scrip carefully before making even the smallest purchase.
We will follow these guiding principles every single time.
We will keep you posted about our progress.
Do share your views and opinions in comments. Waiting to hear from you.