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Consider an Investment Idea Journal
Please consider keeping an investment idea journal. What exactly is an investment idea journal, you might ask? It is a pretty simple concept really. Keep a book, like a diary or a document on your computer or smartphone where you can log investment ideas.
Nobody, and I do mean nobody, has a franchise on good investment ideas. Some excellent investment ideas might flow from rather mundane circumstances. For example, imagine you have to make a trip to the grocery store. While there, you spot a product that captures your imagination. You believe it is a good product that seems to uniquely fill a consumer need.
You might like the product so much that you decide to research the company that makes it. Once you have researched the company, you might, depending on your objectives, your tolerance for risk and the overall composition of your investment portfolio, among other factors, decide to invest in the company.
There is a hitch. When you were in the supermarket, you might have thought the product was great and that buying into the company that makes it might make a good investment. However, unless you remembered to write down the name of the product and made a note to research it, there is a chance that nothing would have happened.
If you keep a journal of these ideas, you can jot them down when you get back to your home or office. All you have to do is make an entry with a date, and check it from time to time. That could serve to stimulate you to do some research or have the appropriate financial professional do some research on your behalf.
It seems that we are all very busy these days. Perceived advances in society, particularly in certain fields, might make us feel as if we are forever playing catch up ball, what with the never ending stream of information we are confronted with daily. That is why an investment idea journal might be such a good idea.
We might see something on television that makes us think of an investment opportunity. We might be out in the car and take a cue from something we see on the road. Our active and engaged minds come up with all kinds of ideas. Some of them may turn out to be quite good. However, as busy as we are, if we do not write our ideas down, we are never going to research them to the point that we might decide to make an investment.
An investment idea journal might just be the right course of action to help us remember our ideas, so that we can research them and, if appropriate, act on them later. Remember, nothing takes place without action. We cannot act if we do not remember to act.
Scott McGimpsey March 28th , 2016
This material was prepared by Scott McGimpsey and does not necessarily represent the views of the presenting party, nor their affiliates. All information is believed to be from reliable sources, however, we make no representation as to its completeness or accuracy. Neither Summit Brokerage Services Inc. nor Scott McGimpsey is engaged in rendering legal, accounting, or other professionally services. If such assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any federal, state, or municipal tax penalty. Moreover, a diversified portfolio does not assure a profit or assure protection against loss in a declining market. UNIFIED PLANNING GROUP is an independent firm with securities offered through Summit Brokerage Services Inc., Member FINRA, SIPC