In Dec 2013, my family went to Hokkaido for a short winter holiday ( I know some of you were wondering if am I taking too much of the health risk while the Fukushima “fiasco” yet to settle, interestingly we are not the only Singapore family there judging by the thundering Singlish voices around us when we checked thru the custom at Hokkaido – we should be alright )
Anyway, that was not the main discussion in this article, as we spent holiday and family time there, watching the interesting phenomenon of winter season and how the locals lead their life – it set me to think about, the nature could taught us about investing mindset too, here are some of my thought:-
Do not under estimate the effect of accumulation – not matter how small the portion you start with. The snowflake is so soft the tiny as it came down from the sky but over the night it has form a one foot deep snow and cover the entire road. The workers need to use bulldozer to clear them so that the road is safe to be driven by regular car.
There are good pick during the bad time. If we equate the wintertime as the bad season for the trees but there are certain trees do not loose their “shine” in the wintertime – eg The Pine tree. If we make this inference to out investment environment, then there will be good picking even in the bad economy cycle. We just need to persevered and stay focus in our investment journey.
There are four seasons and each of the seasons will come and go. Again if we equate winter to the bad economy climate then after Winter, Spring will come. Even within wintertime there are snowstorm and there are bright sky and sunshine for people to come out to play. There is no way we can predict the exact time and date one season will end and lead to the next season but there are certain signs and indication than the season are changing. Sound familiar to the investment cycle?
Make preparation to suit different climate in each season. There are certain activities and precautions we need to do as we live thru each of the season. It is the similar mindset we need to have as we whether thru different economy climate right? Having rainy fund and built up the “war chest” so that we can pick up under value investment instruments.
People from different part of the world go to different places to experience the deferent seasonal climate. As we are getting better connected due to advancement of transportation and also the ease of flying via budget air lines, more people will be able to experience different climate outside their residing country. Such prenominal is just like the globalization and ease of fund flow, we can no longer stuck to the myopia economic view within our country or region.
Same season but different view, when we were up in the hill resort, the snow was so white and its contrast with the trees and the sky was such beautiful/tranquil scenery to enjoy. When we gotten into the city, it is still snowing but it became dirty and greasy along the road due to vehicles constantly passing by and the debris dumped by people were not helpful to the view too. As more people walking over the snow and it became compacted and turn into ice – instead of the nice scenery it became hazardous to walk on; I have seen people slipped and fell! (I almost made it into the statistics ☺). In our investment world, didn’t we experience different outcome while the economy data told the same story? Our greed and fear (just like the greasy and dirty snow at the road side) will also contribute to the different outcome with our investment. So remembered past success will not guarantee future success but as learn from the history we should get wiser in our decision making and assessing the situation.
Besides drawing clue from the nature about our investing mindset another important thing to do is be kind to our environment so that our next generations will continue to enjoy what we experienced now.
Towards our financially savvy journey ! And be environmental friendly
Wei Teck – property coach
Jan 2014
proplaunchsg@gmail.com
www.proplaunchsg.com
www.blissfulproperty.com
The post Investing Mindset – Drawing clues from the nature appeared first on Wealth Directions.