How To Build Your Investment Strategy
Athletes work better with strategies. That is why they have playbooks and programs and sets of plays to follow because it gives them the best roadmap to accomplish their goals and win. When it comes to investing athletes need to follow those very same principles that help them off the field. Here are four ways athletes should build their investment strategy:
Have a Criteria
It’s important to have a criteria of what you want to invest in. What sectors, what ideologies, customer market, purpose, and type of team interests you and align with your vision. Think of yourself as a coach and you are building a team. You’d want to have a certain set of players that fit your criteria of what it takes to succeed. The same translates to investments.
It’s important to mandate obligations to help clear your mind and see the bigger picture. Whether it’s dealing with your business manager, lawyer, financial advisor, or agent. You have to mandate responsibilities in a responsible way to allow you to get a clear scope of your whole business. You are the CEO of yourself and everyone is working to help you. If you are doing every job, you may overstep in some areas because of negligence. Keep in mind mandate does not mean just forget about you management responsibilities. It’s important to audit who you are mandating.
Personal Relationship With Founder
If you are investing specifically in businesses or start ups, it’s important to have or develop a personal relationship with the founder. Not to say that they have to be a family friend or something to that extent but if you are going to be investing your own capital you have to know that you can count on the founder to give his/her all. You want someone reliable and someone that gives you comfort.
Diversification is a key component when building an investment strategy. There are many ways to skin a cat but what happens if you only know one way. That is why it’s vital you diversify. You essentially cover your bets, you don’t put all your eggs in one basket and therefore give yourself a greater chance to win in the end.