This can make investing an almost intimidating path, but the reality is that without having investments as part of your strategy, the path to growing your wealth is highly unlikely. According to The National Study of Millionaires by Ramsey Solutions, there are some pretty interesting findings:
Acknowledging that investments are a standard component of any well-rounded financial plan, why not take some time to learn from those that have spent decades of their lives doing it
This week we sat down with our own Director of Investor Relations, Jeannette Robinson, to discuss what common attributes she has recognized in some of Blue Lake Capital’s most experienced investors.
This means that they are not necessarily caught off guard by varying market conditions, the posturing of politics, or the highs and lows that come into a long-term patient capital approach to building wealth. After all, seasoned investors have made it through periods of history including the Great Depression, the “Stagflation” of the 70s, the Banking Crisis of the early 80s and 90s, the bursting housing market bubble of 2008, and more.
And yet, many continued investing. Why? Because they know the value of discipline and have seen similar, or worse, market conditions in their history. They know variances in the market and the economy is nothing new and is not a reason to panic.The History of US Real Estate from the Great Depression to Present Day
Experienced real estate investors are not emotional, nor do they buy into hype or sharply packaged marketing efforts. In fact, the more experienced an investor is the more direct and matter of fact the conversation goes.
Seasoned investors are often experts or near experts in a handful of strategies, and they remain disciplined over decades as they patiently invest into and building from these areas of focus. When evaluating opportunities, they are very objective and thorough in assessing the fundamentals of each deal, including the business plan, the management team, the strategy, the location, property financials, and the pragmatism of the projected returns. They conduct their own due diligence and consider their actions carefully.
However, they are also not afraid. As much as seasoned investors can’t get “hyped up” by a great deal, they are also not paralyzed by fear and inclined to hide on the sidelines. They recognize the need for objectivity and discipline in their wealth building strategies, and they stick to it when the deal fundamentals are strong.
As was mentioned, experienced investors don’t get hyped up, even for the allure of large returns. Novice investors might be surprised to learn that seasoned investors value something even more than their returns: the relationships.
Experienced investors are often loyal to their relationships above even profits, as who you make money with is of more importance to them than just how much is made. Identifying and building long term business relationships that consistently yield a positive return overall is often more important to seasoned investors than chasing the larger projected returns with the next guy claiming to have the “deal of the century”. Experienced investors recognize that finding good deals to invest in is more commonplace than finding good partners to invest with. When they establish these win-win relationships, built on integrity and trust, they value them and remain loyal and consistent partners long term."Finding the right partners can be of greater importance than just finding the right deals."
Millionaires are rarely made overnight. If you are focused on building your wealth, one of the best approaches you can take is to learn from those that have decades of experience.
By taking the time to reflect on the most common, yet inspiring attributes of experienced investors, you will be able to position yourself to better handle the fluctuations in the economy, remain focused on your goals, and build out the right network for your net worth.
As always, Be Bold, Be Great, and Keep Pushing Forward!