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What You Can Learn About Investing From A Japanese Restaurant

If you have been to Japan, you might notice that many popular restaurants in Japanese cities tend to be small family-owned diners that serve a limited number of dishes instead of large restaurant-chains. This is because the Japanese restaurateurs believe in finding a food niche, usually a particular dish, and work on perfecting that dish. One might even say that the Japanese have turned cooking into more than just a business, but rather into an art-form.

I believe that is also something important we can learn from all these artistic Japanese restaurateurs. As an investor, we are exposed to so many different styles of investing. Each of them are perfectly logical strategies on its own. However, it will be a great danger if we try to use all the different styles together. It would be akin to opening a restaurant and trying to serve every single type of cuisines in the world. More often than not, you will overwhelme yourself and produced only sub-par products.

Instead, we should all invest more similar to a Japanese restaurateur, choose a style you are comfortable in and try to perfect that strategy. The idea here is to turn your investment strategy to more than just a tool to make money, but continue to work on perfecting it.

Only then will you be able to truly understand all the advantages and disadvantages surrounding a strategy. You will know what are the common risks you face when using that particular strategy. You can also limit your field of possible investments in the stock market; instead of looking at hundreds and thousands of companies for investments, you will be able to narrow down your search to just a manageable group of companies.

Foolish Summary

Investing is very much like starting a business. You do not have to be the business that tries to do everything – your little restaurant doesn’t have to serve a variety of cuisines. You just need work on being the best in the particular niche that you choose to be in.

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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 writer Stanley Lim doesn't own shares in any companies mentioned.