Forbes has a discussion on why investing is:
Not a sprint but a marathon
Conventionally this makes sense that investing for the longer term will generally bring "better" results.
Are there situations though where going all out for a sprint is better than the marathon approach?
While this is not to disprove the merits of longer term investing; there may be key word may be opportunities where you may be able to gain more from sprinting in the investing game
Where you have specific knowledge
Sure this will not guarantee you're successful however imagine you work as local real estate agent. As a local real estate agent you generally should have the understanding and ability to access connections & have the knowledge of the market. Where you can purchase a property under market value or where repairs / renovations are required; there is opportunity to make quick $$. Caution should be applied with this strategy and you will need to do your own due diligence
Where you're using a small % of your net worth
Instead of heading to the casino and putting all of your money on black; how would you feel if you put 1% of your total allocation to gamble towards this scenario. By no means are we encouraging gambling, this is purely a metaphor. If you do decide to place some money investing in a "hot stock" or investment opportunity, consider the information you've been presented, ask a lot of questions and then consider putting in a small amount rather than everything you own
Where you have a great team in place
While having a great team of investment advisor's, accountants, lawyers & real estate agents on your side can tip the short term investment "sprinting" odd in your favor, the above rules should still be applied. Having said this having a great team in place can mean that you are able to get access to wholesale investment opportunities rather than a traditional managed fund. Due diligence & questions should be done and safety barriers are important and essential as well
The whole purpose of this story and point is to really look at the principles behind investing and life in general and see how you can adjust or question the way they operate.
While generally yes investing and life is about a marathon, occasionally taking an alternate perspective, getting on those running shoes and sprinting can pay dividends.
What is your key focus in investing?
Why have you been holding back and do you see investing as a sprint or marathon?
If there is any questions or information about your money or life you'd like to see answered let us know.
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Remember to live your Money Glee! :)