Like Chefs in a restaurant and Mom’s in the kitchen, investors will carefully guard their secret recipes. Connoisseurs of wildly successful investment strategies, wealthy investors have developed a strict discipline toward their own investing strategies, that has been forged through years of experience in the financial markets and from defining moments in their own life; as well. The secret formula for investing is not scribbled on a piece of loose-leaf paper or stored away in a Rolodex, it is carefully etched in the minds of seasoned investors. Whether it is spaghetti sauce or shipping container investing, a recipe that has been tried and tested over time, offers investors a taste of sweet satisfaction; gently seasoned with experience.
For most successful investors (Mom’s and Chef’s too), time has been their best teacher. Over time, investment-seekers have learned to look for the truth about investments early on, so as to adjust their expectations according to the perceived risks and proven returns. It’s no secret that wealthy and successful investors do not like risk either and will undoubtedly choose to avoid it whenever possible. Thus, many people believe that THE secret to successful investing is to be able to spot true risk and avoid what is unnecessary. Albeit identifying risk is important, many investors are not completely convinced that there is not more to it than that. After all, most of the investment community would agree that the avoid risk approach to investing, is no secret.
When investors are sitting around debating where to invest their money, they will most often look to the investment community for helpful information and advice. With the hope of uncovering a secret investment or little-known market tip, investors will spend hours discussing investing options and offerings with other investors, on social media and in Internet forums. Albeit these environments provide a healthy exchange of ideas and criticism, it is not likely that the secrets to investment success will be discovered on someone’s Facebook wall or inside a lengthy thread from a forum post. They are much more likely to be found in the heartbreaking losses and joyful gains, brought about by of years and years of mixed investing successes and failed endeavors.