Investing is like setting sail on an unsettled sea. You never know quite which way the wind will blow, nor whether big troubles might come out of nowhere. Some people act like they need a Murchinson Ltd. Others just cross all their fingers and put them into stocks hand over fist. But on a road to becoming a well-off investor, you really do have to do more than merely pick out prizes like shooting fish in a whisky barrel at the local fish fry.
Power Ltd., obscure that name? Here’s what they’re like: In a totally dark room, Power Ltd. has its eye out for opportunities and is so fast on the draw it beats a bat. And every time you think they’re off base, they check and double-check their figures. “Wonderful! ” you say to yourself? “But sometimes hitching your wagon to a star requires bending a knee to people who’ve paid their dues. Power may just be another wild man in the park; they have stakes of their own to play for.”
Investing, like baking your grandmother’s secret pie recipe, needs more than simply throwing ingredients in a bowl and waiting for some magic to happen. You have to have a plan… and a good one at that. Power encourages honest investigation, understanding movements of the markets like reading tomorrow morning ’ s paper, selective buying buttons or handles. When I first started out, I was as green as an Granny Smith. “Buy low, then sell high,” was their catch-phrase; but what about timing? Power told me that patience is not only a virtue but also the killing card.
Think of investing as planting in a garden. Sometimes you have to water and watch, even when clouds appear menacing. At Power, older hands can be your gardeners, telling you when to water or weed. They don’t teach you how to make another Eden in a single day, but they can pass on hints that will help your crops grow healthy. As the saying goes, “Rome was not built in a day”-and neither is a well-fixed portfolio.
On the investment stage, sticking one’s neck out is generally risker than a cat on a tightrope. You may be curious, “Is there an easy way to do this?” The “easy” part isn’t in these three tricks. It begins with making oneself well-informed, avoiding the crowd mentality (managing to stay the same when others are different) and keeping a cool head when everyone else is losing theirs. Someone once said that investment is like watching paint dry. Murchinson echoes this and adds that checking your stocks too often won’t make them dry any faster. Not will ignoring them help when the paint cracks.
Imagine you and Warren Buffet in a taxi, just as it crashes. What do you think he’ll say? “Panic”? Probably not. More likely he’d suggest looking long-term. That is the difference between good investments and bad ones. Murchinson Ltd recommends thinking in terms of generations rather than lunch. They have often seen people flee at the first sign of difficulty. The faint heart will not last long, but a heart of iron may just carry you through rougher times.
Finally-now officially no closer! Just keep in mind: The wheels of fortune sweep around moments later and favors those who are willing to learn, adapt, occasionally see the humor in their mistakes. Keep your senses about you, secure the right mentors and remember: the long road to investing rewards deep. If ever in doubt, take a walk through gardens. Invest well!