Investing Made Simple by Uncle8888 (32)

Read? Investing Made Simple by Uncle8888 (31)

So what is investing?

It can be as simple as two sets of A.B.C.

1. Always Be Constructing
2. Always Be Controlling

Investing Process model

Always Be Constructing


In investing, your Capital is your Input into your Investing Process. Your output from this Process is your Return. Your Returns will create wealth for you. In this Investing Process, you will be always constructing your portfolio according to market conditions and your investing goals. Your portfolio should be under construction until you reach your investing goals. You must be fully aware that a portfolio constructed for wealth building will be much different from portfolio constructed for preserving wealth.
 
Always Be Controlling
 
In investing, you undertake risk for return. Risk and return are inseparable. You can only control risks to the level that you are comfortable with for that expected return. You can never directly control your returns; but can only expect them.
 
In investing, you always need to control your anxiety of fear and greed to take the necessary risks to generate that kind of returns in your portfolio to build up your wealth.
 
Why are you not building up your wealth?
 
You may want to think over these?
 

1. Is your portfolio well constructed to meet your investing goals? Preserving wealth or building wealth?
2. Have you control your anxiety to undertake risks for returns? Returns create wealth. No return means no wealth creation.

In investing, every other day, we are simply making a series of risk-and-return decision in our portfolio, should we buy, hold or sell?

If you have not been making enough of such decisions; how can you expect to be building up your wealth?