It is not news that most ‘investors’ do not have a thought through investment strategy. Asking for a written one is a far cry.
In good time, you would agree that your investments continue to be random acts driven by popularity, hearsay and need to just get the best returns.
The same randomness is equally visible in the not so good times. Stop systematic investments, sell current investment due to panic or take a vow to altogether avoid any market linked investments are some examples of these random acts.
If you were to ask me the difference between having a strategy and not having one, it would be that an investment strategy helps you stay the course. You know why you are doing what you are doing.
An investment strategy holds your investments together and hopefully, you too. It keeps you sane. It is difficult to waver a mind that understands the ‘purpose’.
Call it a set of road rules in your journey of financial independence.
What is an investment strategy like?
The investment strategy is a set of guidelines that direct your savings towards investments in a way that help you meet your financial goals.
I am sharing with you the investment strategy for one of my client’s – let’s call him Bruce Lee.