Writing this post challenges many conservative cultures that frown on the reduction of value to actual dollars and cents. However, is it really possible to say that we do not already subscribe to this way of life? Say for example choosing a life partner, the reason why there are terms like “a good catch” or “a keeper” is because of the value of that person. If you got yourself a more eligible partner, then you would have definitely felt better about it. This is the same as seeing unrealized value and growth in a person or product.
Throughout this blog, we will assist you to find similarities between regular lifestyle and investment choices, so that we can all gain better insights when investing.
Buying a durable product at a higher price
This would make sensible shoppers very excited because they have already demonstrated value investing in their daily life. Such shoppers are willing to pay a slightly higher price for products they need because of durability and quality. On the other hand, other shoppers would rather buy less pricey products, which are relatively less durable.
In short, recognizing value is not an easy task because quality products are often overpriced. On the flip side, some pricey products might also be an unwise purchase, if the rationale of its price is not founded based on logic.
Buying low and selling high (Discount hunters)
When you are about to make an investment, would you rather buy something at its full price or at a discount? The answer is obvious for investors because wise investors only buy shares that have a considerable upside within a reasonable timeframe. In life, we are usually victims of discounts and shopping events like 11.11, 12.12. Some people would buy products even when they do not require them at that moment. In such cases, they are trying to extract value from intermittent discounts for future usage.
Shoppers who are good at identifying discounts are potentially great at trading or even investments. The differences lie in the kind of “products” you purchase because shares are part of companies rather than a consumable product.
Following latest fashions and regretting later
The issue with most people is that they are susceptible to temptations. Coupled with overwhelming marketing, some of us might fall prey to their schemes on a daily basis. Everything from sublimable messaging to bombastic media are poised to affect your decisions in life. Similarly, we are tugged from side to side whenever there is a huge trading volume in the market.
Thus, it is no wonder why markets react so oddly at times, especially when the trigger comes from a “great investor or politician.” Rest assured that when the smoke is gone, you will realize that there was no fire.
Closing Thoughts
Do not be fooled by people who try to persuade you that investing is not for regular people. So long as you are sensible and rational, you will be able to make a profit from the market. This is like practicing restraint during a sale or buying a leather wallet instead of a gimmicky one for greater durability. I would like to encourage more investors to shake off lies made about investments and try it out themselves to pay fewer commissions and have greater control of their finances.
