Why Investing Might Be The Startup You Are Looking For

Have you never thought of starting your own business but do not dare to risk your stable income? Not many people see investing as a career choice, but rather, as a hobby. However, I would like to suggest that investing, if done well, can be the successful business you have always been wanting to start up.

Investing can be a successful business venture

In many instances, the limit of what we can achieve is only bounded by our imagination. If we start our investing journey by seeing it as a new startup venture for yourself, you might achieve much more than just seeing it as a hobby. As we discussed before, it is possible to earn an amount of over S$1.0 million dollars within 15 years. Imagine if you are investing S$1.0 million of capital and earning an average 10% a year, which is a profit of S$100,000 a year, more than the median income of Singapore. If the reward can be much larger than our salary, shouldn’t we treat it more like a business than a hobby?

Be a businessman

If we are going into the business of managing our personal wealth, then we should have a plan and strategy of growing our business. What does treating it as a business mean? It means we should at least

1)      Track all our purchases and our portfolio

2)      Have a process of reviewing and analysing shares

3)      Have a feedback loop of understand why an investment turn out well or bad for us

4)      Constantly improve on the process

5)      Reinvest

Why is this important? This is because in investing, the process of searching for and understanding what you invested in can be more important than what you actually buy. As my fellow contributor, Hui Leong Chin discussed in his article, each successful investor will have his or her own unique style, resulting in a different portfolio of shares.  You can also come up with your own unique style of investing. With a good process and system in place, invest and reinvest to let your money compound and grow for you.

Foolish Summary

It has the ability to bring us to our goal of being financially free. However, in order to reach that goal, we have to start seeing investing more like a business and not as a hobby.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Stanley Lim does not own any company mentioned above