{"id":2619,"date":"2022-05-22T02:38:02","date_gmt":"2022-05-22T02:38:02","guid":{"rendered":"https:\/\/royabhishek.in\/urbanbuyer\/the-one-person-to-listen-to-when-investing\/"},"modified":"2022-05-22T02:38:02","modified_gmt":"2022-05-22T02:38:02","slug":"the-one-person-to-listen-to-when-investing","status":"publish","type":"post","link":"https:\/\/royabhishek.in\/urbanbuyer\/the-one-person-to-listen-to-when-investing\/","title":{"rendered":"The One Person to Listen to When Investing"},"content":{"rendered":"

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If you’re anywhere near my age (I’m going to be 50 very soon), you know you need to be investing a sizeable\u00a0<\/span>portion<\/span>\u00a0of your income<\/span>.<\/strong><\/p>\n<\/div>\n<\/div>\n

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Not\u00a0should be<\/i>.<\/p>\n

Need to be.\u00a0\"Invest<\/b><\/p>\n<\/div>\n<\/div>\n

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There are plenty of reasons for this, not least of which is the uncertainty around how much money you’ll need when you’re done working<\/span>.<\/p>\n<\/div>\n<\/div>\n

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But there’s another very good reason, and it’s stress.<\/p>\n<\/div>\n<\/div>\n

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As a midlifer, I find that stress creeps up very easily<\/span>\u00a0these days.<\/p>\n

Work and family pressures, coupled with a growing sense of mortality tend to make me worry a lot about money,<\/strong> and whether it’s working as hard as me<\/span>.<\/p>\n<\/div>\n<\/div>\n

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This leads me to an important point. <\/p>\n

Once you realise there is some urgency to invest at this age, it’s tempting to start reading all the financial news; scour websites, and ask friends and relatives for advice<\/span>.<\/p>\n<\/div>\n<\/div>\n

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But this is a recipe for bad decisions and long-term problems.<\/p>\n<\/div>\n<\/div>\n

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One thing I learned a long time ago,<\/strong> is that I must only seek advice from people who’ve had consistent success doing EXACTLY what I want to do<\/span>.<\/p>\n<\/div>\n<\/div>\n

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It’s not enough to ask Uncle Terry where you should buy a townhouse if he made all his dough with a parcel of BHP shares his grandma bought him 50 years ago<\/span>.<\/p>\n<\/div>\n<\/div>\n

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Likewise, you shouldn’t expect an accurate prediction of future values in Carlton from your mate at work\u00a0<\/span>just<\/span>\u00a0because he reads The Financial Review every day<\/span>.<\/p>\n<\/div>\n<\/div>\n

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The principles of investing are very simple<\/span><\/h2>\n

But people screw it up in two ways:<\/p>\n<\/div>\n<\/div>\n

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1. They’re impatient.\u00a0\"Where<\/p>\n

2. They get bad advice.<\/p>\n<\/div>\n

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I can’t help you with number one.<\/p>\n

As Buffett said, “The stock market is a device for transferring money from the\u00a0impatient<\/i>\u00a0to the\u00a0patient<\/i><\/span>.”<\/p>\n<\/div>\n<\/div>\n

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This is true of the property market, too.<\/strong><\/p>\n<\/div>\n<\/div>\n

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You either play the long game and win, or you don’t and you lose.<\/p>\n

Of course, there’s the issue of research, planning and strategy, but with or without those, you still need to be patient<\/span>.<\/p>\n<\/div>\n<\/div>\n

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Sure, there are always a few unicorns who time things\u00a0beautifully<\/span>, and they cash in big time.<\/p>\n

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I did that once, and like most people, it was pure luck\u00a0\u2014 nothing more.<\/p>\n

Then my divorce wiped it all out, so it’s like it didn’t happen.<\/strong><\/p>\n<\/div>\n<\/div>\n

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Anyone who peddles advice about quick wins using complex arrangements should\u00a0be avoided<\/span>. Instead, look at how the true masters created their wealth.<\/p>\n<\/div>\n<\/div>\n

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Consider, for example, how Buffett’s wealth grew.<\/p>\n

This hockey stick graph, fuelled by the magic of compounding, illustrates the importance of playing a long game<\/span>.<\/p>\n<\/div>\n<\/div>\n

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\"Buffett<\/p>\n<\/div>\n

So who should you listen to?<\/span><\/h2>\n<\/p>\n
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That’s easy\u00a0\u2014 the man or woman who has at least three market cycles of success behind them.<\/p>\n

For both property and shares, that means at least 25 years.<\/p>\n<\/div>\n<\/div>\n

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And so for real estate, that’s our very own Michael Yardney<\/a>.<\/p>\n

If you’re new to this blog, you\u00a0probably<\/span>\u00a0don’t realise how lucky we are to have a guy like Michael here in Australia.<\/p>\n<\/div>\n<\/div>\n

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\"PropertyHe’s done the work, he has the results, and his reputation for clear-headed, unglamorous-but-effective advice is extraordinary<\/span>.<\/p>\n

I would listen to everything he says. <\/strong><\/p>\n

And like me, I would pay him for tailored advice if the property is where you want to invest.<\/p>\n<\/div>\n

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If it’s the stock market, it has to be Buffett.<\/p>\n

Otherwise, Robbins’ book, Unshakable, is brilliant and should be on every investor’s bookshelf.<\/p>\n<\/div>\n<\/div>\n

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So, like all things in life, the principles are simple and unexciting. <\/strong><\/p>\n

It’s us humans who make everything complicated.<\/p>\n<\/div>\n<\/div>\n

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But once you\u00a0really<\/b><\/span>\u00a0get<\/i><\/b>\u00a0this, you’ll realise that treading the proven path\u00a0is<\/i>\u00a0exciting. It’s exciting because you will know it works. You’ll be emulating those who’ve succeeded over and over again.<\/p>\n<\/div>\n<\/div>\n

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And\u00a0just<\/span>\u00a0knowing this will fill you with a genuine sense of control. You’ll be part of the rare minority who swim upstream\u00a0\u2014 against the masses rushing to the next shiny object.<\/p>\n<\/div>\n<\/div>\n

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You’ll be a\u00a0real<\/b>\u00a0investor, and in the long run, you’ll win.<\/p>\n<\/div>\n<\/div>\n