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As a busy entrepreneur, you know that your time is extremely valuable. Why should you take time out from your business to focus on investing? By investing, you not only protect the money you worked hard for; It also helps it grow and compound over time. If you want to do something really well, focus on mastering the basics first.
This concept applies to sports, cooking, building, and anything else you can think of. In this article, we'll go over three basic strategies you already use in your business to succeed in investing.
Whether you invest in gold, cryptocurrency, real estate, or stocks, these three tips could change your investment strategy. Let’s dive right into them.
Related topics: Why investors with an entrepreneurial past are crucial to the success of a startup
1. Give your portfolio a targeted touch
In business, everything starts with a vision. Let's shine a light on Michael Jordan for a second. When asked what the most important factor in his success was, people answered practice, hard work and luck. His actual answer to that question was, “There’s something amazing about passion. If you love something, if you have a strong passion for something, you would go to extremes and try to understand it or get it.”
Think back to when you started your business. Most likely, you have been highly encouraged to choose something that really excites you. This grandiose vision and enthusiasm probably made it easier to overcome difficult times and keep the end goal in mind.
Now let’s apply this to investing. Are you just chasing random stocks you don't know about because everyone else is? Are you actually interested in this? Do you really see what you are investing in and believe in it?
Would your belief in the long-term vision remain if things went wrong tomorrow? Having a strong vision and enthusiasm for what you invest in is an important business strategy you can use now to improve your investing game. You probably won't feel the effects right away, but you'll notice a noticeable difference when you hit bumps in the road.
2. Align your gut feelings with solid data
Gut feeling is important. As an entrepreneur, you know this. It would be nice to take immediate action on our feelings, but it is important that this is backed up with relevant data. This is especially true when it comes to investing. It's okay to emotionally invest 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 company that does good for the world – for example, by donating a portion of profits to charity. That sounds great, and it may worry you, but if the financials don't make sense, the business won't last. Ultimately, emotions are a good starting point, but it is the data that guides you to the right decision and ensures that your investments not only feel good, but also perform well.
3. Adapt, evolve and thrive in the new era of investing
In the fast-paced world of business, it is not the biggest, strongest or richest who survive. In the long run, the fastest, most open-minded and most adaptable often wins. The same applies to investments.
As Alex Hormozi said, “Maintenance is a myth. If you're not moving forward, you're moving backwards. Nothing in the universe stands still.”
The investment landscape is constantly changing, particularly with new trends such as artificial intelligence, remote work, alternative foods, health technology and green energy. You don't have 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 arises.
Take a look at history. Since the beginning of time, all great fortunes have been gained or lost through the various trend cycles. These include trend cycles in civilizations, weather, nutrition, technology and health cycles.
Those who can identify trends early and adapt to them – whether in business or investing – are the ones who reap the greatest benefits.
Related: Do you want success? Invest in your worst enemy
Last words
As an entrepreneur, you already have the mindset and skills needed to make a successful investment. The strategies that helped you build a thriving business. Having passion, remaining data-driven, and adapting to trends are the same factors that can make you a successful investor.
As mentioned at the beginning of this article, it's not the fancy gadgets, software, or strategies that will make you successful. Success comes from understanding what is important and applying it until you master it.
When you combine the fundamentals of vision, data and keeping up with the trends, you build a portfolio that is not only strong but resilient, just like your business.
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