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INVESTING: FIRST AND SECOND LEVEL THINKING IN INVESTING
It is a real saying that thinkers controls the world. If you don't think, perhaps you're just one butch somewhere down the forest waiting to be cut down. Even Goats think! The only thing that doesn't have a thinking culture is perhaps the dead!
Just as thinking is a vital key in every successful project so also, it is in business Investing! You don't just wake up one morning and you say, "Business, here i come!", without thinking about the particular business you want to invest you time, money, sweat, resources into.
Now, having gone through with the basis, i like to say that thinking in Investing has segments and funny you may just be one of them. Good news is that in areas you're lagging behind, you can still improve and be the best in your world.
Investing-thinking has two branches which you may have recognized when reading the heading of this post, and that is, the first level thinking and the second level thinking.
The first level thinking talks about the very basics, the simplistic, yep! this particular thinker, just needs to know about the future of his business, that's, is the firm nice and currently favorable?, then, the answer is that , it can last long with its stock improving year after year.
They wants the very best from the Investing business, but they are not able to meet their heart desires because, they do not follow the code of a successful business plan and tactics and are wise in their own eyes, not wanting anything like change.
This particular level of thinkers, may not do a thorough search anyway, but they are still a little bit better than the non-thinkers, since they use their mental faculty, a bit averagely.
Many folks are within this incredible set of thinkers, sorry to admit and many don't even notice.
The Second level thinkers are the few genius, business tycoons we see around. This group of thinkers, when going into any Investing business takes into consideration many things, the first level thinker may just not see as 'Threat'.
They do ask questions about what the consensus reasons. What will happen to the assets price if it (that's the consensus), turns in the right direction? If am right, what is the real cogent step to take my findings to the next stage of long lasting success?
The second level set of thinkers scrutinize financial statements and business statements and place value and do ask them selves, what can go wrong and if it does, how large does it impact their business negatively. So they look down before looking up in their sets of business, making sure all loop holes is humanly put into place and set future alarms around their biz.
The second thinkers, are the real success, everyone is looking for, but none wants to pay the price! It takes a lot of Investing experience, time, energy, brains, to be that kind of person or organization.
They do not hurry on an available job anyhow, but if they do rush at some job, then know that they have noticed some big paycheck around the corner that shouldn't enter the hands of the first thinkers.
They are not like those thinkers that go back to a particular well, with the same lame idea, the third time. Cause that's the shortest way to get killed in the Investing business. Mark my word!
We don't just think anything!, no we generate ideas, useful ones, careful and planned ones, like setting up some stock alerts on companies already analyzed by us, even though sometimes target prices do change quickly. But it is a nice cool rock on which thinkers on this platform stands.
Now in these categories of second level thinkers, some makes use of screenings others never bother about that aspect since they have been lucky to invest in a negative earning trend business and jump out in an advantaged situation making hundreds of percent from it. They knew that in the nearest future, what isn't qualitative, could be.
These thinkers are qualified for this position, due to the fact that they saw something that could stand the test of time and be qualitative years to come and carefully and rigidly hold unto it. I think it requires more than just Average thinking to do that.
Please note that, in the midst of scraps, throw-aways, filled with dark corridors, there is underneath at least a gem that has been misplaced, mispriced, for a very long time.
They (second level thinkers), don't think about things only particular with a common situation. Nope, they think farther, something beyond their time lines. Scopes capable to curtail and manage a large firm trend.
They could watch a large wanting- to- conquer firm, for some two to four years, looking at the effective and non effective, the soon to crash and the still standing. Straightforwardly, the winners and the losers (a complete abstract to the first thinkers), and concluding with the best.
Engaging in something leads to another thing worth interest and investing. Normally it is hard to identify at once or immediately, businesses that are productive or not, since they come with nearly the same camouflage!
After settling down properly, this set of thinkers or investors, look at low-ranked stocks, from which they buy opportunities before they give a glance at the high ranked ones, to be able to sell these opportunities in a profitable way.
The witty aspect of these guys, is that they prefer kidnapping a good idea from someone who had offered it, than producing a bad and poverty generating idea(s).
Summarily, i will say that they study their competitors, do some qualitative research on Companies of their dreams, see some niche brokerage which have nice and well built experience to really get their goals as regarding that firm accomplished!
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