How Your Nature Has Lot To Do With How You Invest?

Subscribe to GoodReturns
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

    Investing in an asset class would depend to a large extent on your nature. In fact, your ability to make money can surprisingly depend on your nature. Some may just be able to make more money than others, purely on account of their nature.

    How Your Nature Has Lot To Do With How You Invest?
    Here's how nature would reflect your investment pattern.

    Impatience and Investing

    Billionaire investor Warren Buffet has held stocks for over a few decades now. He's made money holding onto stocks for many many years. So, his very nature is being patient. Others who are impatient may not be able to make money like Warren Buffet as they would impatiently sell their stock if they just made a little money or simple sell their stock at losses without holding onto them for years. So, the nature of patience and impatience has a lot to do with your investment.

    Risk Taking Nature and Investing

    An investor by nature who is a risk taker might end up making or losing money faster as compared to someone who is more risk averse. For example, if by nature you are a risk taker you might make money by investing in risky investment like stocks. You could make or lose more money in the process, but, that is a different matter altogether.

    A Calculative Nature and Investing

    A person who is more calculative will tend to invest more in fixed deposits. He knows that he would get a fixed sum after a certain number of years, though he also likely to have the patient nature.

    Pessimistic Nature and Investing

    A pessimistic investor may never invest in instruments like equities. He may tend to always see the negatives and hide in an asset class like gold, which rallies when things are tough like geo-political tensions, internal strife etc.

    Other factors

    There are various other factors that would also determine how you invest. For example, if you have crossed a certain age you would prefer investing in fixed income securities rather than shares. A retired employee for example, cannot think of taking risk by investing in shares and stocks.

    Conclusion

    Your nature depends on how you invest. Even if you have proven to a friend of your how you have made money in stocks, if he is a risk averse invest he may chose to ignore the profits that you have made from equities. Some have made more money and others have not, merely because of their nature.

    GoodReturns.in

    Read more about: fixed deposits equities
    Story first published: Monday, December 15, 2014, 10:05 [IST]
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'
    India's LARGEST EVER political poll. Have you participated yet?

    Find IFSC

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more