So what is an investment strategy? It’s not an action plan, it’s not a mission statement, and it’s not a set of objectives.
Actually, these concepts are organized as follows: You start with a vision, then a mission to reach that vision, then a set of objectives to guide you through your movement towards the vision. Then comes the strategy, which defines “how” you’re going to achieve the objectives, how you’re going to carry out the mission, and how you’re going to reach the vision. Finally, an action plan is the actual set of steps you take to implement all the above within the framework of your intentions. In other words, the action plan is the manifestation of your intentions.
Let’s start with the vision.
A vision is what you see in the future. In the context of investing, it’s what you see yourself achieve, say 10 years from now.
Your vision is tightly related to your self concept. If having a million freaks you out, because you don’t know what to do with it, or because you worry about protecting it, then don’t worry. You won’t reach that amount! Wealth or poverty, both lie within, not without. Do you want a proof? More than 90% of those who hit the jackpot lose all the money within a year. Why? They are poor on the inside. They can’t handle prosperity, it’s too much for them.
On the other hand, truly wealthy people, stay wealthy, even if their bank accounts are clean and shiny :-). How? They have what it takes, on the inside, to create physical wealth again and again, all because they are full of non-physical wealth. Their minds and hearts are rich.
You always need to start with a vision. You actually do start with one even if you don’t notice consciously. “Everything is created twice” (to quote Stephen Covey): First in our minds, then on the ground. The better the first creation, the more robust and successful the second. So instead of delving into a life-changing experience like investing subconsciously, without being fully aware of your final target, I’m inviting you to sit down, grab a pen and paper, and chart some course.
Now along the path, you’ll face challenges and difficulties, or even unexpected success! Have you heard of the “fear of success”? You need to be prepared. And that where objectives come into play. They guide your march towards your vision.
Success is not only achieving “what” you set for to achieve, it’s also “how” you intend to achieve it.
In summary, an investment strategy is your approach to investing. It’s your vehicle to reaching your vision.
In a following post, I may give some practical examples of the embodiment of a good investment strategy.
Till then, stay healthy, wealthy, and wise…
The Wealth Maker
The Wealth Maker 