With more past years in our career than future years, we are more frequently approached with the topic of retirement planning. An important part of retirement planning is our portfolio investment. Maybe not too surprisingly, there are quite some similarities between career and investment.
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Time, knowledge and skills are applied in a job to make a living or achieve something, so is investment.
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Stock selection in investment has the fundamental approach of starting from top down – pick the market, sector within the market, industry within the sector, and then the company. Against the odds, one could have the right talent and luck to land on a job in a great company of a top performing industry. That aside, would you prefer an average company in a top performing industry to working in a great company in an average performing industry? Are there more chance for a company to be better in a top performing industry? What is the chance of a company to transform an average performing industry it is in?
- Past performance is no guarantee of future results. Don’t count on your illustrious past? Yet, also don’t underestimate your potential if things have not worked out before.
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Have both an entrance and exit criteria for each investment. How many have entrance criteria for a new job? And far fewer people have exit criteria.
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Review the portfolio every x years – where discipline battles against complacence. Do you set aside time to reflect how you are doing in your job?
- Most of us could not beat the average.
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Money is a mean not the final goal.
oliviatamccue 
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