Investments - Looking For Inspiration?

Investors can take a leaf out of their daily lives when picking stocks for investments

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Oftentimes, what’s near can turn out to be more useful and profitable than what is far and unknown. This impression is truer than other investment philosophies. In fact, this belief is so impressive that investors who run profitable portfolios swear by this notion. They intensely focus on basics, and then understand the nuances.

Finance and philosophy may be worlds apart. But philosophy can be translated into a money-making investment idea in the long term. You may ask how? Well, a simple approach is to closely monitor what we consume from early morning till late evening. It not only refers to consuming products in our daily lives but also investing in them.

THE BASICS

Investment ideas are nothing but close observations of small things. Identifying an investment has a lot to do with the behavioural patterns of an investor. There are those that identify investment ideas through observation alone.

A trip to a place outside the city could result in multiple ideas. It could start with roads. A highway which connects two urban cities generates heavy traffic. A listed company which collects toll on that highway could serve as a reasonably good investment.

Similarly, a visit to a departmental store could also provide interesting investment ideas. One has to look at why certain brands in a certain category of food items sell more than their peers. This kind of investing is observational in nature.