Total Clarity

Let’s face it – investing is a complicated process for most investors. I mean after all, look at the marketplace for investment products. The industry is now at the point of trying to market, and convince investors to rely on, computer-based “algorithms” – when investors have no idea how they work. But they are still being expected to entrust their future profits to them! The fact of the matter is that investing is both empirical and behavioral in nature. Investment success requires Clarity in the who, what, where, when, why and how of investing. The problem most investors face is the inability to think with Clarity about the investments they own or why they own them in the first place. To many uninformed investors, volatility is considered risky and they fear it. In spite of the fear, volatility is an advantage and helps grow profits – that is, if investors really wish to be successful over a long-term period. Unfortunately, many investors do not have the Flexibility or choose advisors who have it, nor Transparency in the information they get to see or take advantage of the opportunities the marketplace creates for them to be successful investors long-term. Clarity – The ability to know what investments you own; the ability to understand why you own them in the first place. That is investing in a nutshell. I believe the key to successful investing must lie in what I refer to as the, “Four Key Components to Successful Investing.” Those four keys include your Investment Philosophy, your Strategy, along with Flexibility and Transparency. When you are missing even one of the “Four Keys”, you increase your risk beyond what is necessary – and lose out on potential profits that mean much more money for you in the long run. A business owner intuitively knows that the “Four Keys” are a function of running his business, too. A business owner will more than likely know what his Philosophy and Strategy (a mission statement, a business plan, processes and procedures) are for the growth of the enterprise. Additionally, he will have Flexibility in running his business (decision-making, changes in direction, and so on) and the Transparency (enough facts and real data) to assist in making business decisions. That approach helps a business owner to “invest time and energy with clarity in his business”, just as it helps any investor build and manage a profitable portfolio with success.