Last time we learned that there are three levels of economic well being. The third level is the investment level. Investing means to be clothed in something permanent or not fleeting. This means that investing is not speculative. Investments are meant to be long term sustainable. This means avoiding all investments in fly by night enterprises. This means avoiding all investments based on fads. What is popular today, may not be tomorrow.
Therefore investing will necessarily involve the spiritual quality of prudence. Prudence is cautious wisdom. Prudence would undertake due diligence or thorough research before proceeding with an investment. It is better to understand what you are getting yourself into before proceeding. Many people rush to make a decision and they are encouraged to make rash decisions by those whose livelihood depends upon making a commission.
Making money by investing is an art. Each of us has different temperaments and therefore differing level of risks. It is best to know what kind of person you are when it comes to money and investing. We should be wanting to increase our net worth. This means investing in things of value. Value is subjectively determined. What is valuable to one person is not valuable to another. For instance, in the desert water is more valuable than gold. Value is therefore relatively determined, but this relativity has behind it absolutes that determine our actions.
Investing involves the market. Without a market in which to buy and sell there is no investment possible. Therefore investable funds should be put into a market. Even though value is subjectively determined, the market makes this value objective. This is another way of saying cause and effect. The spiritual precedes the physical even in the financial world. The market makes the invisible, visible.
Investing then is the invisible made visible at the individual level and culminates in the market where individuals make a whole. Investing then is based upon the principle of the one and the many or unity and plurality. In reality, all exchanges are based upon this theological truth and all exchanges require more than one party. Thus, finding a market that will be around for awhile would be prudent for an investor.
Once you have invested your funds, you want to be able to at least get your principal back. Of course, you want your investment to increase in value, that is why you invested your surplus funds in the first place. What is the best investment vehicle? This depends upon the individual. If value is determined at the individual level, then only that individual can answer that question for himself. There are principles of investing, but ultimately each individual is responsible for how he invests his surplus funds. Frugality and prudence are essential for the investor.
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