Five investing tips from Ajinkya Rahane every investor must read
Aren’t you done taking tips on investments from every other guy or your acquaintances in your phonebook? If we go by the dictionary, investing is buying assets whose value increases over time and provides returns in income payments or capital gains.
In a broader picture, investing can be about spending time or money to improve your own life or the lives of others. However, India’s prolific batter and Test specialist Ajinkya Rahane has his say in regard to investment. In one of his LinkedIn posts, the Indian cricketer listed five things he learnt as an investor. Excerpts from Ajinkya Rahane’s LinkedIn post.
1. Invest in people, not companies: Indeed! The Indian cricketer was right on the money when he said that investment should be made in the person, not the company. “I think this is the number one rule for any #investments I make. Even with companies who do not have everything figured right from the start, I believe in backing companies whose founders I can trust,” wrote Rahane.
2. Important to resonate with the company’s vision: Investment doesn’t just mean putting your money; feeling the essence of the particular business is equally important. “I invested in Hudle because I believe in the power of connecting people via sports and also understand how loving a sport can aid/accelerate your fitness journey,” read Rahane’s post.
3. Leave the more significant decisions to the best/ Trust: “As much as I like to be involved, I do not like to nudge until I know something is seriously wrong being able to trust the team I am backing is very crucial.”
4. Company Culture: BANG ON! “I like to invest in organizations with a more utilitarian approach; of course, the decision maker has to take the decisions, sometimes difficult ones. But are these for the larger good of the organization and employees? That is very important for me to understand.
5. Purpose: Anything without a purpose is moving in a circle. “Is there a larger purpose or a problem the company is trying to resolve or does it only cease to exist to earn profits? Profits are good! But the purpose shouldn’t only be to earn profits.”