I have worked with more than 100+ Investors’ and after carefully observing them, here’s what I have found out as the “9 TOP Skills/Traits of a Smart investor”
1.They are long term investors:
Patience with delayed gratification is one of the virtues of smart investors.
A study gave children two marshmallows. Those who resisted went on to become successful than others.
Watch: The Marshmallow Experiment – Instant Gratification
2. Distinguish Myth from Truth
Pro investors don’t believe everything they hear in the News. They understand between –
a) When the hunter comes, spreads the net, and the retail investor falls into the trap and
b) When they need to make a quick move to catch the swing.
True professionals understand and can distinguish between Myth and Truth. They base their decisions on advice from mentors who they know have walked their talk. They base their decisions on economic fundamentals.
When there is hardly any economic activity and the markets move upside, the probability of something fishy is more.
3. They skillup fast and become financially literate
Smart Investors are financially literate and spend time understanding jargon and investing rules. Financial literacy is educating yourself on the relationship between income (what comes in), expenses (what goes out), assets (what you own), and liabilities (what you owe). Pro investors work on their business, not in their business. Pro investors also own assets that work for them, as opposed to working for money.
4. Leverage Time
Smart investors work smart, not hard. They leverage time by investing early and for the long-term. They leverage other people by hiring them for their time and expertise if they are not experts and let fund managers/Advisors take the calls.
5. They Practice discipline
They stay away from shiny object syndrome. To succeed in building long-term wealth, smart investors practice daily self-discipline.
They consistently periodically review their portfolio to match their goals with their investments.
They never lose their way. Focus is the key. They prepare their day the night before.
6. They master their Emotions
Smart investors have high E.Q. than their I.Q. Their ability to be calm despite being under stress, their ability to think creatively under pressure, and they recover quickly if they had made a mistake.
They don’t keep hanging with investments that are in RED and take rational decisions to get rid of them and make smarter decisions.
7. Fast Decision Taker
With time they build up their algorithms in their head and trust their intuition, then decide promptly, and if need be, course-correct alongside.
They don’t have the analysis paralysis syndrome. If there is a misfire, they quickly take aim again and shoot.
8. Persistence is the key for smart investors
Smart investors plan their investments/trades before-hand and not on the ground. They create their investment style and keep improving their style and skills. Huge swings don’t worry them, they love the volatility as it gives more opportunities.
9 They Entrust Professionals
Smart investors know the game. They would not invest in businesses they don’t know, or would outsource their investments to another fund manager who knows better.
Well, my question to you (Investor) is:
“Are you conducting your personal finance like a professional investor in these tough times?”
“How many of these skills do you currently have?”
“Which skills will you master?”
“Most of the investors can skill up and learn more now. Are you going to be the one.”
Well, even if you don’t engage in this post, the answer should reflect in your portfolio one to two years from now.
Make that decision; take one small step in that direction. Remember, we all crawl before we walk. I would love to hear from you, what will you do to upskill from here…., maybe one or two years from now…
By-the-way if you want to Upskill yourself in personal Finance and Wealth Creation, check out my DIY course by clicking here :
It always amazes me the way Indians have a positive bias towards real estate investing. During one of my client’s yearly review google meeting yesterday, I came across the same phenomenon again.
The client had invested around 30% of his portfolio in the peace of land around 5 years back and when I calculated CAGR it came around 10% without the effect of Long term Capital Gains taxes which he would pay once he books the profit.
On asking whether the same investment would further expected to appreciate the way it appreciated in the last 5 years, he said no. So I suggested him to book the profit.
He was hesitant to book the profit. So as his wealth coach, I asked him whether the recent poor performance of his mutual fund portfolio is the reason for his hesitance?
He admitted and said yes.
He had done few mutual fund investments here and there since 2008 before hiring me as his wealth advisor and the same gave decent returns.
When I highlighted decent returns from his infrequent investments into mutual funds, he agreed that returns are good in his equity mutual funds also and agreed to review the booking of profit in his real estate investments.
This led to another challenge, he asked me what to do with Black money that will come from selling real estate?
I have suggested some traditional ways to convert black money into white legally.
The story of real estate investing Positive bias is not limited to one of my clients but for all investors.
The reason for such positive bias towards investing with real estate is that majority of real estate investments are into residential properties and the same are not valued frequently like other investments and are typically sold after 3-4-5 decades as and when required to be sold for various family reasons.
When a residential property is sold after decades of investments, price appreciation in absolute rupee terms looks high and the majority of investor does not understand the power of compounding and can not calculate CAGR they earned from the residential property they sold.
The absolute rupee gains thus create a positive bias for real estate investing as compared to equity/Equity Mutual Funds.
The real question for investors is: How many of you remain invested for 2-3-4 decades in your equity investments?
So as Investors do not remain invested into equity/equity Mutual Funds, they do not have real estate equivalent positive experience of equity investing and thus they are not positively biased for equity investments as compared to real estate investments.
I am not against real estate as an investment class, all I am discussing is Behavioural Biases of Investor so that the same learning may be used by readers to save from such emotional biases.
The point I am trying to make here if you compare equity as an asset class with Real Estate, the historic returns of equity are better than real estate but we could hardly find few investors that have enjoyed the same returns due to their short term behavior.
I would also like to share one of my client’s situation described as ‘Asset Rich, Cash Poor‘.
He is Central Govt Employee and has decent earnings but as 90% of his assets are into Real estate and rest 10% into statutory retirement funds, he is required to borrow money as a personal loan to finance his short term funds requirements.
My Client was eroding wealth as opposed to creating as he was borrowing money at higher interest rates than his portfolio was earning.
Learnings: If an Investor can remain invested for 2-3-4 decades into equity, they can earn far better tax-adjusted returns from equity as compared to Real Estate.
So keep investing into equity and reap the benefit of long term wealth generation while you can diversify your 30-40% of your portfolio into real estate if the remaining portfolio provided for your liquidity requirements.
Caution: While Investing in Real Estate, always consider your Liquidity requirement as real estate is not liquid means you can not sell a portion of your real estate and you may not be able to find buyers as and when you need money.
PS: If you are interested in managing your money/Personal Finance well, I have created an online course for Do-It-Yourself Financial Planning and Wealth Management.
Wealth Doesn’t Have to be to tough and stressful
You are on this page and reading because you desire to create wealth.
You are stuck up How to save enough to Invest? Or Where to invest? Why Insurance is required and what type and how much insurance? You are worried about losing capital while investing. How to manage wealth in the ever-increasing inflation and reducing Interest rates?
You wanted to know ;
How to create wealth that last
How to Manage Wealth?
How to Protect Wealth?
How to transfer wealth to next
Apart from above technical stuff, you are
also required to work on right mindset to create wealth.
Well this is very common and
there is nothing wrong with you if you are struggling with with all these
queries. Every common man and Investor family has been where you are now.
Now It is not tough to find the right help and support – especially when you need it the most – from someone who’s been there, done that.
I’ve been there and I know exactly how it feels. When I started
my Wealth creation journey more than a two decade ago, I had the same
questions. And I didn’t have any of the answers. I had to find the answers
along the way.
But you don’t have to. You don’t have to go searching for the answers. You can focus on starting the wealth Creation Journey instead.
How? I’ll get to that in just a minute.
Before that, let me answer something more important.
Who am I, and why should you listen to me?
I am Brijesh
Parikh, an edupreneur now turned into wealth coach. Founder of PlanetWealth Financial Advisor, a
advisory firm helping families to create wealth, achieve financial freedom and
leave a financially worry free life. I am qualified Chartered Wealth Manager
and SEBI Registered Investment Advisor. Father of Two Children and Husband to
lovely wife. I am on a mission to help 1,00,000 families to leave a financially
worry free life and achieve financial freedom.
I am no
different from you.
I am also an
investor like you. I started my Wealth creation journey two decades ago. During 2002, I had procured study material of
PG Diploma in Financial Advising, a course launched by Indian Institute of
Banking and Finance ( IIBF) in collaboration with Australian Securities Institute to improve knowledge
about personal finance. During Studying the material, I realised my keen
interest into personal finance planning and advising, but time was not ripe for
such initiative. It was time when agents earning hefty commissions ( also
passing the same back to investor under the table) and I didn’t wanted to
practice the same. But In 2013 SEBI came up with SEBI Investment Advisor
Regulations 2013 and opened doors for Fees Based Advising Practice and I jumped
into the same as I wanted to practice Fiduciary ( Conflict Free, Putting Client
Interest Ahead of Self) advising and wealth coaching practice.
I had to learn
everything on my own.
What if I could create a program that
can help anyone who wants to start a Wealth Creation Journey ?
A program that can
Walk you through the entire journey in a simple yet effective way,
Be there to answer your questions,
Be as a guide when you are at a crossroad, and
Be your secret Coach.
A program that captures everything I learned in my more than two decade-long wealth creation journey and takes my learning to thousands of Investors around the country.
A program that is short, practical, and useful, and can be your quick reference guide or blueprint, or plan of action.
Wouldn’t that be great?
I thought it would.
Because there was no such program, I decided
to create one. And I’ve spent the last six months building it from scratch.
I gathered all the best know-how,
support, and resources I had and put them together into a single package to
make your success inevitable.
So here I are Presenting – the complete Wealth Creation program you need to start your Wealth Creation and make it successful.
This training program has
pre-recorded sessions covering all the topics that you need to begin your wealth
creation journey. Each session focuses on a single aspect of building and
growing your Wealth.
Here’s what you can expect:
Session-1 All About Wealth Creation : In this session you will learn Principles of wealth creation using Pyramid of Financial Planning
Session-2 Success Stories : Learn from 3 success stories
Session-3 Study Current Investment Scenario and a peep into future scenario to help create wealth creation plan future proof
Session-4 Goals Settings : Set your Family Financial Mission , Goals and Objectives
Session-5 What Skills and Traits are Needed to be Successful :
Session-6 Understand, Appreciate and Use of Compounding to create wealth
Session-7 Design a System to Create Wealth
Session-8 What’s Stopping you from Creating Wealth ?
Session-9 Journey to Achieve your Wealth Success
Session-10 How to use Principle of Accountability for Wealth Success
Session-11 Action Bias- Putting System to Work – Planning Vs. Actions, Internal Fears/lies that Stops you from Taking Actions and how to overcome the same
Session-12 Result Tracking – Monitoring your Wealth System
session was started on a very positive high note that about more than 80%
Participants completed their first assignment. Kudos to all who did it and all
the best for the second one.
Do -> Teach
It was emphasised that If you really wanted to internalise
your learning, you must apply. Its ‘ok’
if you make mistakes while initial application of Learning, but apply, you
is all about Communication
Deepak Explained that you must master 1to1 communication if you want to master 1tomany communication as part of digital marketing.
effective communicator, you need to be authentic. Everyone is tired of fake people in this
If you wish
to master marketing you must expose your self as much as possible by way of
travelling, reading, learning new languages and doing new things all the time.
your Audience ( Client Persona)
If you market everything to everyone, you end up selling no
one. As such you must find your niche
and as like every other now is the time for super specialisation means you need
to find your micro niche as well to have lesser sharp focus. If you can
identify your micro niche, you can focus your marketing efforts on the same and
as peter Drucker said ‘ The goal of marketing is to make a product that fits
the customer so well that it sells itself.
In order to create product that fits customer you must have your Client Persona also known as avtar. According to HubSpot Buyer personas are fictional, generalized representations of your ideal customers. They help you understand your customers (and prospective customers) better and make it easier for you to tailor content to the specific needs, behaviors, and concerns of different groups.
buyer personas are based on market research as well as on insights you gather
from your actual customer base (through surveys, interviews, etc.). Depending
on your business, you could have as few as one or two personas, or as many as
10 or 20.
Being a Wealth Manager and Wealth Coach I have visualised my
persona(s) based on my actual clientele and My facebook page audience. My
client Personas are as under ;
For creating client personas,
you can refer to following Information / questions;
information such as Jab, Career Path, Family
Information such name, age, Sex, Income, Location
– Means of communication
– Primary, Secondary
Pain Points etc
can we do to solve their problems?
Objections/ Their fears/ insecurities
To add to what was taught by Deepak Kankaraju, there is also
‘Negetive Persona’ is being practiced by Digital Marketer.
buyer persona is a representation of an ideal customer, a negative — or
“exclusionary” — persona is a representation of who you don’t want as a
include, for example, professionals who are too advanced for your product or service,
students who are only engaging with your content for research/knowledge, or
potential customers who are just too expensive to acquire (because of a low
average sale price, their propensity to churn, or their unlikeliness to
purchase again from your company.)
Based on your client/Customer Personas, you must follow
following while writing or engaging with your clients;
Though you are writing for 1 to many but your target should feel like 1:1
Email/Messaging are more powerful than Social keeping with Personification power of both medium
Your Writing should lead audience to read progressively. Means you Heading should lead to First line -> Second Line – > Third Line and so on.
I have been student of Digital Marketing Mastery Video Bundle from Deepak Kankaraju. While Studying through Video Sessions sometimes I found difficulties in implementing and applying skills to real life situations. DM Internship came to me as blessings in such scenario.
I Applied for the programme and got admitted. During
Orientation session I realised that programme is designed in a step-by-step
process and found the same to fill the gap that I was looking for and I jumped
for the participation.
The key takeaways from the first session;
Session of the program started with an introduction to Economics, Marketing and
the opportunities available in Digital Marketing Field. The major takeaway in
this segment was that “Deciding where to compete is half of your success”. That
is you have to choose your niche to compete and its your choice. The session
emphasised that there are ample niche/Micro Niche Opportunities available to
market as markets are ever expanding.
becoming a Digital marketer or learning about a specific technique, one needs
to learn and master communication.
Focus to Improve writing skills
Digital marketer needs to do a lot of writing. The more
you write, the more you improve as a writer and communicator.
Some of the ways to improve writing are
listening to Podcasts,
watch Sitcoms like Office.
Write at least 500 words per day and get feedback from
others about your writing skills.
Future Of Digital Matketing
It was emphasised by Deepak Kankaraju, our Mentor, that Digital Marketing will never die as Marketing will never die and same for Digital World. At most technology being used in digital marketing may evolve further and Digital Marketer should evolve with the same.
a marketer, one needs to focus on a narrow segment of the market — Niche — to
make the best of the opportunities.
is combination of your Talent , Passion and
find out the profitable niches, start market research with your own problems
and how did you find solutions. If you could not find a solution, maybe others
are looking for the same. — “Scratch Your Own Itch”.
are plenty of tools to find out profitable keywords, their search volumes
online — Adwords keyword tool, Ubersuggest, Answerthepublic, Ahrefs, Moz,
SEMrush, Search console, keywordtool.io and many more.
Google trends, find out what are the hot topics and what the world is searching
you find a higher Purchase Intent in these keywords, there is a marketing
to start with a focus on finalizing your Niche, Keywords related to Your niche,
Search volumes of these keywords, long-tail keywords ( more than 3 words) and
articles that can be written about these keywords.
course is structured well with equal importance to theory and practical
application of the concepts.
focuses on Integrated Digital Marketing Approach which involves the following ;
Sales and Conversions
Search Engine Optimization (SEO)
Social Media Marketing
The deserving interns shall also have option to work on
live projects based on performance. Though it is a paid internship, one can
easily earn back the investment by completing the assignments within the
stipulated time frame.
12-week program is a good opportunity to get hands-on experience on the basics
and various aspects of the digital marketing process.