7 Investment Principles

There are principles that must be observe in taking any investment decision/step so as to yield good return on investment (ROI). Listed below are 7 tested and proven principles if properly observed before taking investment decision will keep you smiling to the bank;

1. Do not Invest in what YOU do not know about.

It is very essential, that you know ALL you need to know atleast, to keep your principal save even if you do not make profit after investment, before you take the decision. Failure to obey and observe this principle can be very disastrous to your hard earn income. Do not invest in real estate if you know nothing about real estate, do not investment in stocks and shares if you are not informed, do not invest in Gold and Diamond if you know nothing about how the market work etc.

2. Do not Invest under pressure.

There is nothing like invest now or never in investment world. Investment done out of hurry will end in a hurry without a guarantee of principal nor interest so beware!!! A case study of what happened in stock market during the global market crash lots of novice invest hard earn income in shares and stocks and today they are reaping their fruits of impatience. Sadly, people took loan from banks and today they are hiding from banks, some are being chased by EFCC and Police men. So do not invest under PRESSURE!!!

 

3. Do a thorough Research before Investment.

A smart investor will always do research about every investment before taking decision. Know who the board members of the company you about to invest. Know if the board members are men and women of integrity. How experience are they? study the financial statement of the company if you do not how consult and expert to help you out. Get information about the company and weigh it, also do not forget to listen to your instinct because sometimes, your instinct might speak to you.

4. Know when to take Profit or outright sale.

The reason why some investors are smarter than others is because, they know when to close shop, they know when to open. Nothing more disastrous to an investor who does not understand time factor in investment world. N10m worth investment can shrink to N10,000 within a space of 1month if you do not understand investment time factor. Study investment trend especially, in that area you have invested your money so as to know when to take profit and when to sell.

 5. Have an Investment Policy.

It is essential you have policy guiding your investment decision(s). If you currently work in an organization and you earn salary, know what percentage you are investing, know what percentage you are saving for the unexpected, know what percentage you are spending etc. which you must always adhere to irrespective of what happens.

 

6. Give to Charity.

The bible says givers never lack. Add to your investment policy CHARITY. Have a percentage you give to charity, could be monthly, quarterly or annually that way, you are bless the more. Housman said "Every man should be afraid of death till you make a meaningful contribution to human kind". Lots of issues of live you can contribute to in resolving and long after you are gone the world will still be celebrating YOU. So do something, if you have been doing, do more.

 

7. Give to God.

Give your tithe and offering as well as special contribution to promote the work of God and never give

grudgingly. This is the greatest INVESTMENT you know why? because all long and lasting wealth comes from GOD and good investment decision(s) also comes from HIM.

 

Till I come your way again remain BLESSED. Thank you.

Author: Abiodun Adeyemo......ProfessionSpeaker/ Investment Analyst.

Note: I will appreciate if you can post your view(s) including question(s) on this topic and on any other topics of interest.