Surprised to read about Batman and investments in the same sentence? Don't be. Not many would associate a comic book character with investing. However, there's a lot that investors can learn from the Dark Knight and his modus operandi.
Here are 5 investment tips from Batman.
1. No super powers, but he's still a super hero!
Interesting, isn't it, Batman has no super powers. Unlike his fellow caped crusaders, he can't fly; neither can he spin a web and swing across buildings. In effect, he is a super hero with no super powers. All he relies on are his physical and mental skills like a mere mortal. And yet, he emerges a winner every time.
Similarly, investors must appreciate that they don't need to be 'investment gurus' to achieve their financial goals. All they need to do is, invest in a disciplined manner and keep things simple at all times. For instance, investors should be unambiguously aware of their investment objectives i.e. what they want to achieve via their investments. Also, they must understand the characteristics of the investment avenues deployed i.e. the pros and cons. Having a contingency plan i.e. a 'plan B' is vital as well. There's no reason investors can't succeed, if they stick to the basics of investing and adopt a diligent approach.
2. The omnipresent Batsuit and Batmobile, among other gadgets
Ever noticed how Batman uses a plethora of gadgets. But primary among them are the Batsuit (with the utility belt) and the Batmobile. No matter what the situation, the aforementioned always have a role to play. While other gadgets keep appearing in an intermittent manner, these are the mainstays of his arsenal.
Investors must ensure that they have a solid core portfolio in place. It can be comprised of various avenues like mutual funds that have stood the test of time, bonds/instruments backed by a sovereign guarantee. Gold must find place in every portfolio from an asset allocation perspective. Although not in the domain of investments, the importance of being adequately insured cannot be overstated. A term plan is an ideal way to acquire a substantial insurance cover at a low cost. Opting for medical insurance is pertinent too. Once a solid core portfolio has been built, other avenues can be included in the portfolio, depending their suitability for the investor.
3. Robin and Alfred to the rescue …
Despite the fact that he's a bonafide super hero, Batman is never short on allies. For example, for advice, he turns to his mentor Alfred, who also doubles up as his butler. And, when its time for action, Batman's protégé Robin isn't far away. Commissioner Gordon and Lucius Fox have a part to play in Batman's crime-fighting escapades too.
For investors, the most important ally is the investment advisor/financial planner. This individual should act as the bridge between investors and their financial goals. He is required to have a fair degree of expertise as far as investments go and must consistently work in the investor's interests. Investors on their part must ensure that they are always associated with a competent and committed investment advisor.
4. Batman preys at night
Unlike other super heroes who operate in broad daylight, Batman preys at night. In fact, he uses the cloak of darkness to his advantage. In other words, he steers clear of the herd mentality and adopts an approach that is suited to him. That makes Batman, a bit of a contrarian vis-à-vis his peers.
It is not uncommon for investors to get swayed by trends and popular opinion while making investment decisions. Over the past few years, avenues like tech stocks/funds, ULIPs (unit linked insurance plans) and NFOs (new fund offers), among others have at various points in time, captured the investor's fancy. Several investors have been guilty of getting invested without fully understanding the investment proposition on offer or evaluating the suitability. Typically, this phenomenon can be attributed to herd mentality i.e. investors got invested simply because everyone around them was doing so. It is important for investors to make investment decisions based on what is right for them, rather what everyone around them is doing.
5. The baddies keep coming back …
Batman has to contend with an impressive list of super villains - the Joker, the Penguin, Two-face, the Riddler, to name a few. Sure, Batman beats them every time, but they keep coming back. And the eternal battle between good and evil continues like an ongoing saga.
It's no different with investments. The process never really comes to an end, not even for investors who may have that ideal portfolio in place. Changing economic environment and risk appetite are some of the factors that necessitate a constant review of one's investment portfolio. A fulfilled need will be replaced by the emergence of a new one. Investors would do well to appreciate that investing is not a one-off activity. This in turn, reinforces the need to devote adequate time to the investment exercise.
Clearly, there's a lot that one can learn about investing from the Dark Knight. From an investor's perspective, the key lies in utilising these pointers to achieve his financial goals.
Here are 5 investment tips from Batman.
1. No super powers, but he's still a super hero!
Interesting, isn't it, Batman has no super powers. Unlike his fellow caped crusaders, he can't fly; neither can he spin a web and swing across buildings. In effect, he is a super hero with no super powers. All he relies on are his physical and mental skills like a mere mortal. And yet, he emerges a winner every time.
Similarly, investors must appreciate that they don't need to be 'investment gurus' to achieve their financial goals. All they need to do is, invest in a disciplined manner and keep things simple at all times. For instance, investors should be unambiguously aware of their investment objectives i.e. what they want to achieve via their investments. Also, they must understand the characteristics of the investment avenues deployed i.e. the pros and cons. Having a contingency plan i.e. a 'plan B' is vital as well. There's no reason investors can't succeed, if they stick to the basics of investing and adopt a diligent approach.
2. The omnipresent Batsuit and Batmobile, among other gadgets
Ever noticed how Batman uses a plethora of gadgets. But primary among them are the Batsuit (with the utility belt) and the Batmobile. No matter what the situation, the aforementioned always have a role to play. While other gadgets keep appearing in an intermittent manner, these are the mainstays of his arsenal.
Investors must ensure that they have a solid core portfolio in place. It can be comprised of various avenues like mutual funds that have stood the test of time, bonds/instruments backed by a sovereign guarantee. Gold must find place in every portfolio from an asset allocation perspective. Although not in the domain of investments, the importance of being adequately insured cannot be overstated. A term plan is an ideal way to acquire a substantial insurance cover at a low cost. Opting for medical insurance is pertinent too. Once a solid core portfolio has been built, other avenues can be included in the portfolio, depending their suitability for the investor.
3. Robin and Alfred to the rescue …
Despite the fact that he's a bonafide super hero, Batman is never short on allies. For example, for advice, he turns to his mentor Alfred, who also doubles up as his butler. And, when its time for action, Batman's protégé Robin isn't far away. Commissioner Gordon and Lucius Fox have a part to play in Batman's crime-fighting escapades too.
For investors, the most important ally is the investment advisor/financial planner. This individual should act as the bridge between investors and their financial goals. He is required to have a fair degree of expertise as far as investments go and must consistently work in the investor's interests. Investors on their part must ensure that they are always associated with a competent and committed investment advisor.
4. Batman preys at night
Unlike other super heroes who operate in broad daylight, Batman preys at night. In fact, he uses the cloak of darkness to his advantage. In other words, he steers clear of the herd mentality and adopts an approach that is suited to him. That makes Batman, a bit of a contrarian vis-à-vis his peers.
It is not uncommon for investors to get swayed by trends and popular opinion while making investment decisions. Over the past few years, avenues like tech stocks/funds, ULIPs (unit linked insurance plans) and NFOs (new fund offers), among others have at various points in time, captured the investor's fancy. Several investors have been guilty of getting invested without fully understanding the investment proposition on offer or evaluating the suitability. Typically, this phenomenon can be attributed to herd mentality i.e. investors got invested simply because everyone around them was doing so. It is important for investors to make investment decisions based on what is right for them, rather what everyone around them is doing.
5. The baddies keep coming back …
Batman has to contend with an impressive list of super villains - the Joker, the Penguin, Two-face, the Riddler, to name a few. Sure, Batman beats them every time, but they keep coming back. And the eternal battle between good and evil continues like an ongoing saga.
It's no different with investments. The process never really comes to an end, not even for investors who may have that ideal portfolio in place. Changing economic environment and risk appetite are some of the factors that necessitate a constant review of one's investment portfolio. A fulfilled need will be replaced by the emergence of a new one. Investors would do well to appreciate that investing is not a one-off activity. This in turn, reinforces the need to devote adequate time to the investment exercise.
Clearly, there's a lot that one can learn about investing from the Dark Knight. From an investor's perspective, the key lies in utilising these pointers to achieve his financial goals.
2 comments:
Brilliant article and well thought off… to most novice investors and youth who are reluctant of reading financial articles, mainly due to jargons used, will find this interesting. Simple language and analogies used will not only make reader understand the importance of financial planning but also will interest them to venture further. Keep up the good work, looking forward for more of such articles.
Regards,
Dharmesh Chauhan
This one is awesome - strong important message in a very simple manner....I am sure it will instantly strike a chord with the uninitiated!
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