“Let the Investment Grow”

In my last posted , I talked about staying focus and remaining focus On the big picture. This post is pretty similar but more details on being an investor. One of the biggest problem for young investor faces is what to do after you have chosen a company to invest. Investing for wealth is not accomplish overnight. It could take months or even years. Take a look at the Big picture, we invest because we have abundant of money sitting there doing nothing but declining due to the annual inflation. So we decided to put this pot of money into work to gain wealth and for our future. Everyone has a different reason, but the bottom line is increasing it value over time. We first must realize that this process go on and on until we die. It always better to have money making money for you. The whole ideas is to tell us time is always on our side and it not the other way around. We keep our money in a company that continue to growth thru our life time and we definitely will be better off then selling it for a small profit now or a small lost to switch to a company for a quick gain. One of the best investor warren buffet is a great example of this ideas. He own company like Coca cola and Geico Insurance for about at least 20+ years and he still own them now in his portfolios. Why because they are strong standing company. Thru those 20 + years coca cola probably had a couple down turn, but it always end up growing bigger and bigger. Once you chose a good company to invest relax and do your homework every week. Average about an hour of research on a stock a week is needed to make sure that the company isn't going down the drain and it growing. Sound very simple, but why many investor choose to take losses and keep trading actively. Simple reason greed. This tend to get a lot beginner into a lot trouble. Investing with borrowed money, investing with quick expectation, investing for short term success. Ask yourself these questions before you decided to sell, Am I going to end up making this much when this company in 2 years from now going to double up or triple up? Why do i need to make these quick couple thousand? What are the percentage of me making the quick cash? Am i certain that this company will jump as soon as i buy it? Is this company better then the company I'm owning right now? Am I willing to own the new company for the long haul? Why did I chose to own this company in the first place? After going thru all those questions and it still led you to switching company then go for it. Most likely 90% of the time you will not be switching after asking yourself these questions. Why because you probably is investing in a company that you have total confident in or else why would you put money in it!!!!!! Of course there always cases where other company that arrive unexpectedly and if there is 100% profit why not take it, hehehehe :)!!! All in All remember investing is a continually process that go on and on till the day you die. It like planting a seed or a plant in your back yard, give it sometime, waters it , nurtures it, and let it growth into something. Sometime you find something great that will always be growing forever and turn in harvest every year like the coca cola company that warren buffet own.