How To Find Your Investing North?

Investing can be confusing. Although I have been investing for about ten years now, it had taken me more than six years before I could confidently say that I have found my Investing North. Investing North is the style of investing that suits one’s own personality.

Investing is a very personal endeavor. Even though there are many information and opinions of investors available for us to learn from, it is extremely difficult to just copy the style of investing from other investors. At the end of the day, you need to be comfortable with the companies you have invested in. If you are merely replicating the portfolio of other great investors, how can you feel comfortable when a crisis arises or when one of your companies faces a negative event?

So, how can you find your investing north?

Define Your Goal

Firstly, think about why are you investing in the first place? Are you working towards a financial goal? Are you investing for your children? Or are you just saving up to buy some desirable item?

Knowing why you do something will keep you focused on how you should be doing it.

Try Out All Styles

When you are starting out, I encourage you to invest with just a small amount and with all the different styles of investing you can learn about. For example, try out buying a fast-growing company, or invest in something purely for its dividend or look into investing in deep value companies.

Record Everything

Next is to record the process. Write down on the companies you are researching on. State clearly to yourself why you are buying a stock. Record your trade: what you bought, when you bought and why you bought it.

And over time, always review back on your investments. Has your original thesis panned out? Why or why not has it panned out? Has the investment been worth your effort? Are you comfortable with the stocks while owning them? All these would help you form the right style of investing that you can use throughout your life.

Once you know what are the type of companies you are interested to research on and the style of investing that most suits your objective, you would be able to form your own unique strategy to manage your own portfolio.

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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 doesn’t own shares in any companies mentioned.