5 LAWS OF INVESTING

5 LAWS OF INVESTING

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Warren Buffet, the world-renowned stock market genius has this all-important rule for investors; (1) Never lose money, (2) Never forget rule 1” How true! A smart investor knows that financial skill is not all about creating and spending money, but investing it wisely, in timely investment opportunities as it present itself.
Skill is a major requirement in the pursuit of any goal in life and investing wisely is the secret of smart investors. It is either they protect their hard earned money from loss or they never invest all. Smart investors wait particularly for opportunity to invest before the even care to open their wallet and part with money. Remember the old saying, which says “a fool and his money are soon parted”. Don’t also forget the Chinese proverb which says “Money making is like digging with a nail, while loosing money is like pouring water in the sand”
In this article, I shall proffer five but powerful laws of investing observe them and in no distant time you will find your self on top and start smiling to the bank like Warren Buffet whose statistics shows that he’s worth billion of dollars. Are you ready? Okay, let’s go.
Warning: Remember, that ignorance of these laws should not be an excuse and the violation of these investment laws is a criminal offence punishable by life long poverty if you did not take an urgent step to take heed! Don’t let this happen to you. Here are the laws:

: investigate before you invest: many people fall victims of this type of error and a wise man once said that if you continue in error you might end up in horror! Even start up entrepreneurs are not left out in this snake pit until the money they have over the years worked for fizzle out like smoke in their own eyes. How do you desire to get rich if you do not know what you are doing? You invest in stock market without understanding any a single concept in stock market, what you are to manage and the financial skill required for success. What about those whose interest is trying to invest in the intellectual properties or real estate without having a Mustard seed idea of what they are going into. These set of investors have little understanding of how things work and they still complain that things are not working? That, in my own opinion is a paradox.

Before I started up my journey as an investor I did a lot of market research (which I think many start up entrepreneurs don’t and won’t do) especially in the area of information marketing consulting. I consulted with experts who have track records of success investing in the same line of business. I made sure these consultants are not just talkers but doers before even listening to them and parting with my money. So my market research became a lifesaver! You see, it takes more than money to give life to your investment; you need the instruction backing the “know how” and the experience of people who share passion to make your goals a reality. These set of people have investigated this line of business. You can ask them to show you the way. You don’t want your fraud-free money to end up with fraudsters. Do you? If “NO” then, you better obey this law!

Invest in things you fully understand and believe in:
Before I invested kobo in the area of intellectual property, I consulted a book, which I think every smart intellectual property investor should never hesitate to grab. The title is multiple stream of income written by my money mentor, Robert G. Allen. I bought this book for one reason: to have a better understanding of what I believe in. that you believe in that line of business is not enough to succeed as an investor, you also need a good understanding In business. The insight I gleaned from this book make me conclude that I will surely be a high flier in the school of intellectual property investing. For sure! Please do the same, understanding your business.
LAW 3:test before you invest: do many start-ups do this? I think the answer is capital No! Every investment needs a qualitative testing or pre-investing exercise. For instance, in stock market investment, experts say smart investors will invest first on paper for days (at least three good months) before investing in a real life market. Think on paper! Do some mental simulation through testing before investing

4:consult with experts for thorough analysis: I cringe when people go into a business they cannot analyze for either present profit or future growth. Expert business start up analysis will save an investor some headache financial loss. Business analysis provides full detail analysis of a particular business so that you can invest with peace of mind without any hard feelings. Get a business startup analysis before embarking on your journey so that you can return with windfall of profit.
5:make sure your business fits your talents: this I think is one of the most important in the school of investing. Can you imagine a person who has no talent for spotting errors and desire to go into proofreading business? How do you think such a person will survive? According to the Bible your talent is the power given to you to get wealth? (Deut 8: 18) and also the maximization of such talent will facilitate more resources beyond your widest imagination (matt 25:26). Invest in what you have the skill for and don’t copy your own self! Remember that you also need to develop you talents and fire them into skill level because talent unrefined is like crude oil. In market! A gifted talent is different from a polished talent. When you polish your talent it becomes a skill and becoming skillful in what you do is what makes you a professional. Marry your talents with your business and you will be discharged and acquitted from the court of poverty!

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