How do I become a successful investor? No doubt, it's a question that we've all asked ourselves. In this blog we look at some of the attributes which we believe can help you achieve success on your investing journey.
In the words of Warren Buffett, the world's most successful investor; "Risk comes from not knowing what you're doing." We agree.
Understanding the proposal and its risk is critical to any investment decision. So before making a decision, make sure you fully understand the proposal by doing your homework. Projects listed on CrowdfundUP will always come with a comprehensive Information Memorandum which should address most questions, and if not, use the social media function to ask your own questions.
Remember, making an investment without homework is speculation.
"Someone is sitting in the shade today because they planted a tree a long time ago." Warren Buffet.
Common traits of successful investors are patience and discipline. This means you will have to wait for the right opportunity; one that meets your investment objectives and risk tolerance. Conversely, you need to wait patiently on the sidelines in between opportunities.
CrowdfundUP continually lists a variety of projects to meet a wide range of investment objectives, so keep an eye on our listings for the proposal that works best for you.
Emotions can often cause irrational investment decisions. "Chasing" the latest hot market or asset can result in overpaying, or selling investments when asset prices are falling. An advantage of Real Estate investment is that volatility (the speed and extent of price movements) is lower than many other investments, and Real Estate will always have a value (unlike shares for example which can fall to zero). Because of this, irrational investment decisions are less likely.
The most common approach to reducing your overall investment risk is through diversification. This works on the basis that poor performance, or a loss, on a single investment only has a limited impact on your investment portfolio as a whole.
We believe this is particularly important in Real Estate, where the investments required can be large, and many projects involve exposure to a single property.
Diversification can be applied at many levels:
Great investors are able to act when the right opportunity comes along, but you can only act if you have the cash available. So make sure to have some cash (or investments which you can readily liquidate) at all times. While this can depress your overall returns over short periods, it gives the flexibility and capability to act when the right project comes along.
On the great advantages of CrowdfundUp is that we offer a range of projects across a wide spectrum of individual properties, risk and term. In addition, with investment amounts starting as low as $100, you can easily diversify no matter the size of your investment funds.
"Any advice provided on this blog is general in nature. Readers are urged to seek their own professional advice before making decisions."