You’re analyzing the following three investments, each from totally different industries:
|Company||Product||Annual Revenues||Profit||3-Year Return on Investment|
|Pets-R-Us, Inc.||Pet Supplies||$4 million||$500,000||48%|
|Wake Up, Inc.||Energy Drink||$2.5 million||$350,000||56%|
|All Natural, Inc.||Organic Food||$2 million||$175,000||40%|
Which is the best investment? Which one should you go with? It seems obvious—but only if you’re considering just the numbers.
The reality is that there are so many other factors that are more important than the numbers alone. When you base your investment decisions on numbers only, you set yourself up for a lot of stress, anxiety, and frustration. When you get outside of what you know and understand, what’s important to you, what brings you joy, and where you can contribute value, what your core purpose is, then you remove money and financial decisions from its most important foundations. You make decisions based solely on what makes you the most money, not what brings you the greatest happiness based on your contribution.
In the example above, what if the category of health and nutrition is a major part of your purpose? Would it really make sense for you to invest in a sugary energy drink over an organic food company simply because it makes you more money? Of course not.
Investing is about so much more than numbers and money. It’s about values, competencies, focus, personal drivers, purpose, and joy. It’s about your unique contribution and legacy. It’s about making a difference. Most important, it’s about your peace of mind and happiness. This is why it’s critical to understand your investor DNA. What makes you tick? What’s important to you? What would you love to be involved with, and what would be boring or unfulfilling to you? What aligns with your values, and what violates your values?
When you make investment decisions from this more holistic place, then you become more congruent within yourself, and subsequently enjoy the process much more. You make better, wiser decisions. And as a result, you end up making more money in the long run than if you make short-term decisions based solely on money.
My 5 Day Weekend collaborator Garrett Gunderson has created a process to help you understand your “Investor DNA.” I will introduce this to you in my net post.
I’d love to hear your thoughts about what you believe to be your Investor DNA. What kind of thing brings you happiness? What’s important to you? Thank you for sharing.
Secure your copy of the “5 Day Weekend” book. 5 Day Weekend: Freedom to Make Your Life and Work Rich with Purpose [Nik Halik & Garrett Gunderson]