9 November 2022
Hey Luv, Happy Wealth Wednesday!
Making money should be simple if you follow the methods of successful investors, logic suggests. The process underlying their wealth accumulation is pattern recognition — the ability to analyze patterns and systematically determine what those patterns indicate about what will happen next. The exact process underpins computer machine learning and artificial intelligence.
To some extent, everyone practices pattern recognition; some train their minds to be particularly adept at the skill. For example, good quarterbacks can find an open receiver and throw the ball before the player completes his route. Winning poker players study their opponents’ patterns to learn “tells” that distinguish bluffs from winning hands.
You get what you pay for – Most people go through life haphazardly, accepting its ups and downs because they believe the future is unpredictable. Similarly, investors are influenced by what they hear from friends and neighbors, read in the newspaper, or see on television from one of the many investment gurus who know the “secret” of wealth communication.
Surprisingly, they put less effort into their investments than their golf game. While also expecting their assets to compound consistently, they know that despite their practice, they have no chance of competing on the professional tour.
Those seeking wealth must follow 4 fundamental principles to succeed:
1 – Change your perspective – You must believe before you can achieve. Decisions are always more important than the circumstances that surround you. Rosa Parks changed America when she rebelled by refusing to give up her bus seat. Ulysses S. Grant provided a historical account of the Civil War by continuing to write despite his debilitating, ultimately fatal disease.
Concentrate on what is essential, not the minor distractions and events interrupting your day.
2 – Immerse yourself in the finer details – Anyone with a computer or a library card has access to knowledge. Before taking the first step in investing, it is critical to understand as much as possible about investments — types, mechanics, tax treatment, liquidity, and history. In addition, you must understand the nuances of risk and preemptive risk management, how events affect prices, and how emotions influence investment decisions. In the future, continue to learn.
3 – Look for a role model – Following in the footsteps of successful people is the simplest way to achieve success. You will achieve similar results if you do what they do. However, duplicating a role model’s actions differs from identifying and learning the patterns through analytical interpretation that lead to an investment or sale. What copying entails is understanding what affects the economic and financial environment that prompted the purchase. For example, what drove their investment profile this year rather than last? To be wealthy, you must be an original, not a forger.
4 – Remember that money is not a prerequisite for happiness – The pursuit of riches frequently overwhelms its pursuers. Its unwavering plan can cost families, friends, health, and happiness. Remember: Time is way more valuable than money. According to many studies, you will need— time spent alone and with others while still pursuing hobbies or simply resting and recharging in your free time. Time is limited, as the average American life expectancy is 79 years. Past time, unlike money, can never be recovered; once it has been spent, it is gone forever.
True happiness is derived from fulfilment or the sense that one’s life has meaning. Money is essential, but only to a certain extent. The decision to pursue wealth or fulfilment is entirely personal. Whatever decision you make, you must follow through on it.
Do you agree with the above?
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Talk soon,
Jeanetta Cardine
