If you're looking for a "quick fix" or "crystal ball" to provide long term financial growth, you won't like what I'm about to say. However, if you want a proven strategy to achieve financial goals, here are my 3 Ingredients for winning investments across multiyear investment cycles.
1. Extreme Patience
“The most money I ever made, I made sitting on my hands doing nothing” ~ Warren Buffett
Take a page out of the book of one of the greatest investors of the modern area. Less is more when it comes to long term investing. Long term set ups like the 2014 to 2016 oil price decline of 60% and the subsequent 60% rise from bottom to recent 2017 top don’t come along often, but with patience and planning, they do come around... and investing with the wave may add years of economic value to your portfolio.
2. A well-defined investment philosophy, process and policy
What do you believe in? Is your capital aligned with your values, goals and market outlook? Have you written an execution plan for the investment you are about to make? All these things need to be addressed to achieve the optimal investment mindset. If you enter into a long term investment without the proper context and planning you increase the likely-hood of an undesirable outcome.
3. The proper mindset at execution
If you have executed on numbers one and two....this tends to happen naturally. When a calm confidence washes over you when you execute your plan, you are there.
Remember – there are no guarantees in investing, so give your hard earned money every possible chance to succeed.