Investing

Are you afraid to invest on your own?

By Kanwal Sarai
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Are you afraid to invest on your own? When it comes to investing, fear and lack of knowledge holds most people back. I’ve been asked many times if my approach to investing is so great why doesn’t everyone do it.

Here are my reasons for why people don’t invest on their own in dividend stocks:

1. People don’t know about this approach to investing
The financial industry spends millions each year on marketing and advertising their products. The constant bombardment of getting people to buy financial products confuses most people. But don’t be fooled; do not get your financial education from marketing materials or news articles.

2. People don’t think this method works
Again the financial industry does a good job of showing you why their methods work and the rest don’t. After all they profit from charging fees, and they lose money when you don’t buy their financial products. People have a false impression that they will fail if they start to invest on their own. You don’t need a degree in finance in order to be a successful investor.

3. Most people don’t have the discipline to apply this approach
Dividend value investing is a long-term strategy, and most people don’t have the patience or discipline to wait long enough for their investments to make money. We live in a world of instant gratification; everyone is looking to make lots of money in the shortest amount of time possible.

4. This method is dull and boring
Dividend value investing is a boring a dull approach to investing. You basically buy quality stocks when they are undervalued and hold for the long-term. These quality stocks do not include Facebook, Snapchat, Twitter, or Tesla. Hot sexy stocks always make the news, and are great to chat about but they are also risky and not good candidates for making you money in the long-run.

5. They need someone else to blame if things go bad
Dividend investing on your own means that you are 100% responsible for your investing decisions. When stock markets tank it’s easy to blame your financial advisor, but when you invest on your own you have no one else to blame. Follow the 12 Rules of Simply Investing to help you select the best dividend stocks, and to minimize your risk. Stock markets will go up and they will go down, but remaining patient and disciplined will help you achieve financial success. Don’t worry about who to blame.

Which of the 5 reasons do you use to avoid investing on your own? The only way to get over your fear and excuses is to educate yourself on how to invest. Start slowly and start small, gradually your experience and confidence will build allowing you to save on fees and grow your wealth.

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Photo by Tim Swaan on Unsplash
Showing 5 comments
  • lakdas nanayakara
    Reply

    I appreciate all your help
    thanks

  • Archit Agarwal
    Reply

    Hi Please let me know your contact details so that i can reach you. As i need many suggestions from you if you can help.

    • Kanwal Sarai
      Reply

      Hi Archit,

      Please use the contact page (link located on the bottom header) on my website to get in touch with me.

      cheers,
      Kanwal

  • Joe Yusuf
    Reply

    Hi kanwal
    Great course I have learnt a great and have put this into action .
    How do you deal with company take overs this seems to effect the stock price and dividends would appreciate your opinion.
    Thanks Joe.

    • Kanwal Sarai
      Reply

      With takeovers, it takes some time for the integration to complete. In the short-term I would look to see if the dividend has changed. Then I would apply the 12 Rules of Simply Investing to ensure the merged company was still a quality company. If you already owned one of the companies, and the dividend remained the same, and the new company was still a quality company, it would make sense to continue to hold. If you were looking to buy the stock after the merger, apply the 12 Rules and make sure it is still a quality company and it is undervalued.

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