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IN this article, I intend to discuss the major 3 qualities any person required highly, when dealing with personal investment or personal financial planning.
Absence of any or more of this can lead to confusion, trouble or failure of planning. These 3 qualities are ‘Focus, Quality and Patience’. Each of these connected well together. Another important factor is, all of these are soft qualities and not possible to attain through any class room training. Reading the success stories of legend investors like Warren Buffett or Philip Fisher will give you an exact idea of the requirement of adapting these qualities to life to attain successful investment and personal financial plan.
The first and important quality in this group is ‘Focus’. You can also call it as ‘goal’. Any action without a ‘focus’ or goal is useless and never produce required results. If you are investing in equities or planning your personal finance in a better way, the very first requirement is, having a focus or deciding the goal that need to be achieved. This is vital to justify any actions that to be taken time to time.
Second is ‘Quality’. Quality of an investment instrument means the power of producing desired returns for long time. To identify the quality of an investment instrument, an investor should do proper study and research to understand the durability and competitive advantage of the company, quality of management team and right price to purchase. In case you are planning your finance, the quality of the products you are selecting to meet your goal are vital.
Final quality mentioned in this article is ‘Patience’. Most of us are well aware about the requirement of patience. Specifically, if you are a value investor. Patience is the utmost quality each investor as well as the personnel who planning the personal finance should have. It is not a hidden truth, money required time to grow. To go with your focus and quality investments by over covering all the tempting situations like recessions and huge market crash or volatility, practicing ‘patience’ is most required. I have already posted an article on the requirement of patience and you access the same here for more reference.
Feel free to inform or comment if you have any doubts or queries on this article.