Lesson #1 – Focus on Your Craft and Keep Working at It
THIS ARTICLE WAS WRITTEN BY TAY JUN HAO AND FIRST PUBLISHED ON THE ASIA REPORT
One of the main reasons why I became competent in investing was focus…
Finance is exciting; there is nothing quite like it in the world.
It never stops, there is always something new happening and providing that it is done right, it can be immensely profitable.
Nothing gets people more excited than the idea of getting rich, and there are an abundance of people willing to sell you the latest system to help get you there.
When I started out, I was extremely suspicious of all trading strategies. But with time, I have come to change my stance on it.
You can make money investing in almost ANYTHING. That’s the truth. There are people who make plenty of money trading commodities (Jim Rogers), using a global macro strategy (George Soros), or in real estate (Donald Trump).
The point is whether YOU can do it. The 80-20 principle holds true in any field of investment that I can think of. If there is a market, someone is making money. The question is not whether they can make money, but whether YOU can.
Are you focused on your craft?
(Photo: Unique Japan)
Everyone I know who has made significant sums of money investing in shares as a common trait is extremely FOCUSED on one field of investment.
People who are great in forex stay within forex, people who are great in real estate stay within real estate, and people who are great in investing in businesses stay within that area. It’s only when they venture out of their competence that they get burnt.
What it Takes To Be The Top of Your Field
(Photo: Netflix Skinny)
Malcom Gladwell repeatedly talks about the “10,000 Hour Rule” necessary to become the top in one’s field.
Think about it for a moment: if you tried 10 different investing strategies over the course of 5 years, how good would you be compared to the guy who honed in on his skill of investing in businesses by reading a thousand annual reports?
Admittedly, it’s much easier to talk about starting a bunch of different new things compared to actually honing in on our skills day in, day out.
It’s exciting to talk about the potential rewards, to get hyped up about the changes and impact that it’s going to have on our life… but reality slowly sets in after we realize it’s much harder than we thought, and we soon move on to the next project.
This cycle repeats itself, and soon we find ourselves becoming a jack of all trades yet the master of none.
Working hard in silence isn’t glorious or exciting to talk about over the dinner table, but it is a necessary trait that all famous people have.
Every leader in their field is famous for one thing to which they dedicate their life and passion to – Steve Jobs, Michael Jordan, Bill Gates, Henry Ford, and Rockefeller.
The greats are great because they became great in their field, and the only way to become great in investing is to focus and grind relentlessly in one specific field.
The same applies to investing. If you’ve decided on a particular style, make sure you put in the time to master it. Jumping from course to course will not lead to true mastery.
I caught a movie recently which exemplifies this type of thinking – Jiro Dreams of Sushi. Check out the trailer below, and I hope it inspires you.
PS: President Obama recently visited Jiro in his trip to Japan earlier this year!
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All views and opinions articulated in the article were expressed in Jun Hao’s personal capacity and do not in any way represent those of his employer and other related entities. Jun Hao does not own any shares in the companies mentioned above.