Top tips on how to Make Smart Investment Decisions
Smart Investment Decisions. The process of making smart investment decisions is complex. While humility is a virtue in all parts of life, when it comes to making smart decisions with money, it serves as a vital layer of protection.
The process of making smart investment decisions, especially in 2023 is complex. While humility is a virtue in all parts of life, when it comes to making smart decisions with money, it serves as a vital layer of protection. When it comes to your money, there are no silly questions. I recently spoke to an Irish software engineer who had been made redundant. He received his redundancy payment and had no idea what to do with it, how to make it work, or if it was even safe in the bank. All legitimate questions, from a a highly qualified individual.
Remember that fellow student in university who raised his hand and asked the question that everyone knew the answer to? Remember how the class laughed and thought that person was dumb?
It turns out that person wasn’t dumb. That person was humble. Being humble, when it comes to money, is incredibly smart.
That Individual may very well have been Warren E. Buffett who, at the age of 92, still spends the majority of his day reading and learning. Why does he do this? To learn things he doesn’t already know.
The importance of Informed Investing
You would think that Mr. Buffett — one of the most successful investors in the history of investing — would know everything he needs to know by now. That with a net worth of $112 billion dollars, he may have already proved he knows and thing or two. But if there’s that much stuff that Warren Buffett still doesn’t know, chances are we could also stand to learn a thing or two. It starts with being humble enough to raise our hands when we don’t understand something.
So if we want to continue to make smart investment decisions, consider this a lesson we can’t afford
If there’s something in your portfolio you don’t understand, say something now. Having the humility to admit there’s something you don’t know is the smartest thing you can do.
Ref: Carl Richards