What Your Hobby Teaches You About Investments?

[sunandaC]

What Your Hobby Teaches You About Investments?


The dictionary defines Hobby as….. “A hobby is a regular activity or interest that is undertaken for pleasure, typically done during one's leisure time”.

From the above definition three points are clear about Hobby….

1. Regular Activity or Interests.

2. Undertaken For Pleasure.

3. During Leisure Time.

Let us understand the attitude of a Hobbyist. (Let us assume that he likes to collect Coins…for the sake of this article)

Regularly Look Out for the Coins:-

Depending on the type of collection he wants to make, he will always be on look out for those rare kinds of coins in the market. He will spend time in gaining the knowledge about particular kind of coins before he starts collecting. He will know all the unique characteristics of his collection on tips of his tongue.

Investment Lesson:- Spend time in studying the company before investing….know all the facts and unique characteristics of the company before investing…and know the figures by heart.

 

[netrashetty]

Well Said Would like to add in saying that When a Hobbyist knows the importance of a particular kind of coins (As he has studied in details in the first place), he is sure about the value. He knows that he can not manipulate the value of the coin so he concentrates on the price…… lesser the price he pays compared to value, more he gains. In fact, lesser the price, more he buys!!

Investment Lesson:- Know the value of the shares you are investing in……know that you can not do much about its value….in share market you can not do much about the prices also ( as they are market decided). The best way is to buy shares those offers most value at discounted price. Father of Value Investing Mr.Benjamin Graham called this as Margin of Safety.

Returns:-

Hobbyist is collecting coins for pleasure….the thing make him the most happy is that he hold particular kind of coins. He is not ready to sell……his holding time is for life!!

Investment Lesson:- Warren Buffett is the most important example for this characteristics…he is not ready to sell his shares. In India, I have seen Parsi community holding shares of TATA Companies are not ready to sell single shares as owning Tata Shares make them happy….not the price….no doubt, they get the dividends in Lakhs and Crores!!

 

[rosemarry2]

What Your Hobby Teaches You About Investments?


The dictionary defines Hobby as….. “A hobby is a regular activity or interest that is undertaken for pleasure, typically done during one's leisure time”.

From the above definition three points are clear about Hobby….

1. Regular Activity or Interests.

2. Undertaken For Pleasure.

3. During Leisure Time.

Let us understand the attitude of a Hobbyist. (Let us assume that he likes to collect Coins…for the sake of this article)

Regularly Look Out for the Coins:-

Depending on the type of collection he wants to make, he will always be on look out for those rare kinds of coins in the market. He will spend time in gaining the knowledge about particular kind of coins before he starts collecting. He will know all the unique characteristics of his collection on tips of his tongue.

Investment Lesson:- Spend time in studying the company before investing….know all the facts and unique characteristics of the company before investing…and know the figures by heart.

Hi friend,

Here I am sharing Notes on Saving and Investing, so please download and check it.