08.06.2016

The hidden equation in the art of investing

“Believe in your potential even if you haven’t seen the results”. Gaby Natale

“Believe in your potential even if you haven’t seen the results”. Gaby Natale

It’s funny how in the process involved in determining the value of an investment one can find many similarities in the experiences of those determined to achieve success.

 

If there is anything in common between these individuals willing to challenge the status quo and anyone who evaluates the possibility of investing, it’s the emotions they both go through.

 

Ambition is that fuel that pushes a conventional individual to seek more, transgress his or her own limits, and move toward success. The trigger for the investor in this case is the cash flow, and his clear preference for achieving the greatest flow in the periods of investment.

 

Fear is that enemy and ally that puts us face to face with uncertainty and incites us to challenge it to discover our true potential and what we are really capable of achieving.

 

In the world of investments, we unload the fear in the discount rate that we use in our projections, seeking to eliminate this negative sentiment that causes uncertainty in regards to an investment. We seek at all costs to diminish the risk according to what we are willing to assume.

 

Finally, there is no more tangible evidence of an individual’s passion for his mission than impatience, that effort to see our dream come true. In an investment, results are expected in the shortest possible time, since the faster our expected results are achieved, the greater our performance will be.

 

In short, all these unknowns of the equation are those emotions that when correctly aligned towards a goal, can become motors that turn an ordinary individual into a successful one, considering that at the end of the day, everything in this life is an investment.

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