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Secret #9: Become a conscious investor

The Famous graphic artist M.C. Escher said that “most of the time we are meekly sleepwalking on a treadmill.” In other words we are acting in an unconscious way and making little progress. This certainly applies to investing. Most of the time decisions are made based on either hope and wishful thinking or on abstract academic theories.

Fortunately investing is an area that responds well to becoming more conscious of what we are doing and why. “Risk comes from not knowing what you are doing,” Buffett said.

The whole direction of Conscious Investor is to place your investing, and hence your financial future, on a firm basis of sensible and knowledgeable investing. Yet there is another part of being a conscious investor and this is to invest in companies with products and services that you support and believe in. When you
become conscious of why you want to invest in a particular company, then risk can be substantially reduced. Investing this way helps to eliminate many of the unknowns whether psychological, emotional or material.

As those who have been to an annual meeting of Berkshire Hathaway will know, Buffett gets great pleasure from using and talking about the products and services of the companies that he invests in or owns.

When you do this investing becomes easier and more fun. You don’t have the worry of having your money tied up with enterprises that you know little about. Also you will become a more astute investor since you are picking up signals about the economics of companies long before they show up in its financial
statements.

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