MENU

Why Investing Is Like A Good Cup Of Coffee

I have to admit; I am an addict.

I am addicted to coffee, same as more than one billion people around the world who need at least a cup of coffee every day. As I sip my daily dose of caffeine, I could not help but notice the similarities the world of coffee has to the world of investing.

I have consumed over 10,000 cups of coffee over the past 15 years, and I am starting to see that investing is just like a good cup of coffee. Here’s why.

In Search Of The Perfect Cup

I have an unspoken desire when it comes to coffee. I tend to be in a constant search for the perfect cup of coffee. So whenever there is a new coffee shop that I come across, I would rush to try its coffee. However, more often than not, I would be left disappointed. Moreover, I concluded that there is no such thing as the perfect cup.

Similarly, in investing, we are constantly searching for the perfect strategy in investing – always eager to learn from other investors on how they invest and what they are investing in. However, in investing, there is also no such thing as the perfect style of investing.

The Best Cup Is The One You Like                                      

Everyone has a different taste. I like my coffee black, with a tinge of milk, enough to turn the coffee brown but not enough to alter the taste of the blackness. And no sugar, please.

However, not many people like to drink my type of coffee. In fact, most would despise my coffee. That being said, why would I care what others think of my coffee? After all, I am the one drinking it.

When it comes to investing, all we have to do it to find the style that we are comfortable with and is aligned with our personality. Even if others do not agree with how you invest, why should that matter? It is just between you and your money.

The Fundamentals Must Be Strong

Regardless of how you like your coffee, the fundamental of the coffee bean must be good to have a good cup of coffee. This means that the coffee bean must be of a quality breed, and that it is harvested and roasted properly. Only then can you have your best cup of coffee, irrespective of what you like to mix your coffee with.

In investing, we can all have a wildly different investing style. Nonetheless, our fundamentals must be strong in order to have a successful strategy. Fundamentals of a good investor are having patience and being able to see a stock as a part-ownership of a business. If we can all agree on these two fundamentals of good investing, how we want to shape our strategy is purely up to us.

If you want to learn more about investing and to keep up to date on the latest financial and stock market news, you can sign up for a FREE subscription to The Motley Fool's investing newsletter, Take Stock Singapore

Also, like us on Facebook to follow our latest hot articles. The Motley Fool's purpose is to help the world invest, better.

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.