Tuesday, 9 April 2013
I Will Explain How Making an Investment is Like Fishing
There are two things I enjoy very much. Fishing and investing. Over time I have discovered that this pair of activities, have a great deal in common with one another. I know this because being retired, I have ample opportunity to do both. With that being said, here are the 3 ways that it occurred to me, that fishing is a lot like making investments:
When it comes to learning about the best spots and best times to fish, the average fisherman will obsess over the location and detail of every possible opportunity. This occurs in much the same way an investor will conduct pain-staking research into each and every viable investing option that arises. I for one have been known to take hours at a fishing spot and weeks on an investment.
Just because a fisherman discovers a great hole full of fish, that doesn't mean that they’re taking a bucket home for a bounty. It is possible that they will have to wait there all day, before catching a thing. The same holds true for investments. When investing, the reward rarely comes right away. In most instances investors must wait for their returns.
Let’s face it, sometimes fishermen lose their bait, hook and/or line. Whether or not it is through any fault of their own, a fisherman’s bait and/or tackle can disappear. Unfortunately the investment world is no different. If an investment does not earn enough of a return, inflation can begin to eat away at an investor’s principle.
The challenges that confront both investors and fishermen can be overcome with good preparation. As an investment-seeker you must be prepared to wait for an opportunity to arise. In the meantime you must learn about investments and wait patiently for rewards, while being aware of the hazards and risks.