Investment Lessons from Makar Sankranti
Understanding the basics of investments in a fun way, through Makar Sankranti.
Going by the names of Bihu, Pongal, Til Gul, and others, the event of Makar Sankranti marks the day when the sun shifts from the Tropic of Cancer to the Tropic of Capricorn and is regarded as the beginning of the new harvest season. While the warmth in the air is good for sowing seeds into the soil, there’s no reason why you can’t begin with new investments with some lessons from this harvest season. Just because you are reading this article on Strata’s website, it doesn’t mean you can’t apply these lessons to investments other than those in commercial real estate.
While Makar Sankranti by itself is considered auspicious enough to start new ventures, let us take some time to understand what the popular kite-flying time has to teach about investments. There is more in common between them than you might have expected.
Preparation – We all begin somewhere, and most of the times it is about understanding a process or a task. Just as with kite flying, you know there will be some of your kites that will not see the end of the day, a prudent investor knows the value of capital and that in the process of investment, there are risks. To minimize risks, one has to gain knowledge of the market and understand the highs and lows that may happen across the tenure of the investment.
Understanding Goals – Once the kite takes off, one needs to guide it efficiently so that it keeps soaring higher, take care of the headwinds and steer away from other lines, trees and other obstructions that might snag the kite. Much like in investments, one needs to maintain a close watch, so the capital stays safe and unnecessary risks are avoided.
Adaptability – Sometimes the wind is not favorable enough. Do you just give up or do you keep up your efforts and wait to get that impressive peak for your kite? Likewise in investments, patience pays. You must understand the difference between a bad market and a market that is dormant for some reason. That make the difference between a good investor and a great investor.
Protection – When the sun is up high, but the winds are just too favorable, you can’t miss the opportunity to let your kite soar new heights. But at the same time, you need to wear sunglasses and caps, so you can see where your trusty kite is going. In investments, you also need clauses like inclusion of insurance, risk free instruments which allow protection of capital investment.
Vision – This goes hand in hand with understanding your goals as an investor. There are always risks in any kind of investment, as there are many kites that you need to compete with in the skies. You need to understand how far you can go without taking undue risk, while also realizing optimal returns. In short, you have to expect the best, but at the same time, prepare for the worst.
It is no wonder that almost every observance in our celebrations has something important to teach us about life and managing the subtleties of the same. Every kind of investment is ridden with some amount of risk. In long term investments like commercial real estate, the risk is most often offset by the tenure of the investment and the stability of the asset class, while returns are made better due to capital appreciation. To make the most of any kind of investment, as an investor, you should invest time into understanding the asset class that fascinates you and know about the ups and downs involved. With Strata, you get in-depth details and explanation about the asset you are interested in, while also getting the probable forecast of how it will perform as time goes by. To know more about commercial real estate investment via fractional ownership, please visit us at www.strataprop.com.