One Size Does Not Fit All... and That's OK

February 12, 2014 11:09 AM By alex.locker
Image courtesy of zole4/freedigitalphotos.net

Have you noticed all of the advertisements that essentially say, "We know the answer... the one way you should invest"?  It's a good line for selling something, but could be questionable if you dig deeper.


Given the multitude of perspectives and investor preferences that exist, how can one approach fit everyone?  The answer is simple.  IT CAN'T.


If one approach were deemed to be correct, then logically, it still couldn't work in a marketplace.  For example, if you assume all investors want to be correct, and the correct action were to buy something, there would be no one to buy it from.  If the correct action were to sell something, there would be no one to sell it to.


Solutions are not absolute.  They are relative to your situation.  In my opinion, your success rests in having a plan that helps you understand what tactics you may need to take while being flexible and nimble enough to change as needed. In the beginning of Sun Tzu's   The Art of War , he explains that one must understand:


  • Your Belief System - what you want to accomplish and how you want to do it;
  • The Environment  - what uncontrollable factors may help or hinder you;
  • The Situation - where you are now and what it will take to get you to your goal;
  • Leadership - confidence in your/the decision maker's abilities;
  • Management - the proper use of resources at the appropriate time.

The solutions you choose may change over time due to uncontrollable, changing conditions.  No one solution will fit everything, but you can increase your odds of success by utilizing them properly.

alex.locker