109
Anyone that knows me, appreciates that I am a conservative Accountant with the moto “Trust but Verify”. However, this inherent attribute has caused me to miss out on investment opportunities.
I attended University for Accounting and Finance and this led to a career as a CPA, Chartered Accountant. I consider myself to have an above average acumen in investing and finance and have definitely made more money than have lost in my investments. Something many of my peers cannot say due to the dot.com era. However, like many, missing out on huge big win opportunities has always plagued me – the age old “coulda, woulda, shoulda!” haunts me.
But then on August 15, 2016, it happened, I became a BeLEAFer. I took the plunge and rearranged my portfolio to begin investing in the legal Marijuana industry. My friends saw this as incredibly uncharacteristic and worried about my apparent financial recklessness. They told me I had finally lost my mind – “he must be going through a mid-life crisis”.
However, my inner investing group knew that this behaviour was very similar to my conservative approach. Let me explain …
“Investing 101” tells you before you invest you should always make sure you establish three fundamental elements to your Investment strategy. These are:
1) Create an Emergency Fund to ensure you are liquid should any unforeseen negative circumstances arise i.e. job loss or health issues. I always recommend a fund of at least 3 – 6 months of household income, this buys patience in whatever you choose to invest.
2) Set your Financial Goals everyone is unique, but my personal goals are:
i)Stay diversified to reduce overall financial risk.
ii)Take control of my personal investments and earn capital appreciation greater than most RRSP mutual funds.
3) Perform Research be prepared to do your homework. This does not mean knowing all of the current financial forecasts or latest trends but rather taking the time to look for opportunities in existing or growing industries. I remember years ago reading about the large decline in home prices after the collapse of the housing bubble, leading to mortgage delinquencies and foreclosures and the devaluation of housing-related securities. Prior to this historic event most “Experts” said this could never happen. But, clearly this debacle proved that the so called “Experts” are not always correct. Do not always believe everything people tell you and definitely do not be afraid to act on what you believe.