When engaged in the business of living our lives, it is critically important to know yourself in all things that you do. In the context of personal relationships, we must learn about ourselves to develop healthy relationships with others. Harmony requires that we be up-front and honest. In an ideal situation, the strengths of one person in a relationship will compensate for the weaknesses of the other.
In the world of investing, knowledge of yourself is no less important. The most important thing that any investor can know about themselves is the degree of risk and volatility that they are willing to accept. Similarly, one must be honest about how much their willingness to take action and close a deal. This principal is doubly important since most investment ‘systems’ focus exclusively on the academic side of deal analysis. It is certainly important to find good deals, and analyze them quickly, but all of this can be for naught if the investor lacks the willingness to take action at the critical moment. Things can also fall apart if the investor does not follow through sufficiently to see the deals through closure and into implementation.
The truth is that there are two types of investor. One type is suited for assembling ‘deals’ that can generate tremendous returns. The other is either uncomfortable with the risk & uncertainty implicit in assembling deals or is unwilling to take action at the critical moment. This type of investor is typically better suited to steady compounding of investment returns over a long period of time to create wealth. It is important to note that both investors can be very successful. The path of the deal maker tends to achieve wealth more quickly than the ‘slow and steady’ investor, but either of them can realize tremendous amounts of success with the proper balance of analysis, discipline, and the willingness to act.
In the end, it is much more important that you know yourself than that you know how to execute a particular system or strategy. Systems come and go, strategies constantly change with the business environment. But knowledge of yourself is a priceless asset that will serve faithfully throughout the tenure of your life.
The Solomon Success Team
Flickr / Martin Burns
