Investors choose different strategies to guide decision making. This plan of attack is based on a variety of priorities and goals, the future needs of the investor and risk tolerance. Investment strategies combine a variety of components and may include buy and sell strategies, asset allocation and risk strategies. Investors may choose to focus on rapid growth strategy where capital appreciation is paramount or may focus on safety strategies where wealth protection is the focus. In general, the criteria for successful investment are that is in alignment with the individual goals of the investor and is closely monitored.
A number of sound investment strategies exist for private investors wishing to keep pace with changing global economic trends. The investment strategies of the future are those which hold the most sustainable potential in a quickly evolving environmental, financial and social marketplace. The investment strategies which an investor selects need to be in tune with global trends and tailored to outclass traditional options, as these continue to compete with traditional market trends
Planning an Investment
A solid investment strategy begins with a solid assessment of finances. Creating a very clear picture of the financial situation will make it easy to analyse investment time frames and risk tolerance. Next it is important to understand investment options such as investment types. In contemporary markets, renewable energy investment, like forestry investment, teak investment or oil-drilling investment are good sustainable investment options.
Successful investors apply diversification strategies. This means investing in a range of different assets. This reduces and distributes risk across a wider platform. The allocation of funds is an important investment strategy. Investments may be spread between asset categories such as cash, bonds, stocks and real estate. This is known as asset allocation and is a procedure used to reduce risk.
It is very important that strategies are closely monitored to ensure progress. This usually requires re-visiting and re-allocating your portfolio to ensure investment is aligned with need and future financial goals. Tax implications also need to be considered, especially in the area of tax advantages and consequences. This will ensure that money is saved and not unnecessarily squandered.
Applying Investment Strategies in the Work Place
In the same way that investors are able to plan and implement investments strategies to creating income for themselves or investors, investment strategies can also, be applied to managing your investment in the work place. In this way it is possible to receive the greatest return on your investment. In this case, resources like time, money, employees, raw materials or resources may form the basis of your “investment”.
In much the same way as you would first perform a thorough assessment of your financial position before you invest, an office investment strategy would need to assess all the facets of your office “capital” before considering the appropriate way to approach an investment. This means accurately assessing your strengths and weaknesses before deciding on a budget and marketing plan, for example. This will enable you to accurate asses your workplace “risk tolerance” and how resilient your office strategy is to changes like financial losses, information technology problems and employee changes.
Applying diversification strategies in the workplace could mean splitting available resources, be they financial, time, or employees between as many solid “expenditures” as possible or not placing all your eggs in one basket. Dividing your resources appropriately can mean better time management, financial management, and productivity in the workplace.
Just as with an investment strategy, adequate monitoring is very important to the success of the work place.
If you are not aware of the progress of your various strategies, it will be impossible to make a judgement about whether to continue on your current path or implement changes to your “investments”. For this reason a simple monitoring program needs to be set up to obtain an accurate picture of successes and failures occurring in the work place.