7 Investing Tips that can Help Batman Buy a New Batmobile and Some Sexy New Rubber Outfits
One of the great things about prudent investing is that it can help you reach your goals. Bruce Wayne knows all about the investments that offer big results — although most of his investments are in his own company, or in his alter-ego, Batman.
If Batman is ready for a tricked out new Batmobile, and a new batcloset full of sexy rubber batsuits (a nice mix of nipple suits and non-nipple suits, so he’s well covered for any occasion), he can use investing to help him reach his goals. Investing can also help him reach long-term goals, such as being able to remodel the Batcave to suit his retirement needs. Here are 7 investing tips that can help him reach his goals:
1. Know Your Goals
Figure out what you want your money to accomplish. Decide on some goals — and a timeframe for achieving them. Batman will need to make different investment moves if he wants enough to buy a new Batmobile in the next two years. However, for the long haul (and that Batcave outfitted with grab bars), a different investing strategy is needed. Decide on your goals, and create different portfolios that can help you meet your various needs.
2. Know What You’re Investing In
Bruce Wayne is a smart guy — and Batman is the ultimate detective. It should be pretty easy to do a little research into various investments. Indeed, Bruce Wayne should heed the advice of fellow billionaire Warren Buffett: Only invest in the things that you know. Whether you are investing in collectibles, stocks, commodities or real estate, you should have a solid idea of how the financial instrument works, and what you are getting into.
3. Understand Your Risk Tolerance — Financial and Emotional
All investing comes with risk. Obviously, Batman can handle just about anything. Before you invest, evaluate your risk tolerance. Your risk tolerance comes with two components:
- Financial: How well your finances can tolerate risk. Can you afford to lose the money if things go south? Can you afford to have that money tied up in an investment? Know what your finances can handle in terms of risk.
- Emotional: You should also consider how much emotional risk you can deal with. If you will constantly worry, and if it can affect your relationships, you might hold off on something really risky, even if you have the financial risk tolerance.
Clearly, Bruce Wayne can handle just about any financial risk — he’s a billionaire! And, of course, Batman has a high emotional risk tolerance. His thrill seeking is worthy of any day trader.
4. Diversify Your Investments
You want a certain amount of diversity in your portfolio. Bruce Wayne could use a little help with this one. Most of his investment dollars are in his own company. Too much company stock can be a real detriment — what if the company goes belly up? Perhaps Bruce should consider investing a few more other types of companies. Diversifying across industries and sectors, as well as varying your asset classes and mixing it up a bit with foreign investments can help. While you don’t want to diversify to the point of dilution, diversity can help protect you against losses, and provide you access to growth that can help you reach other goals.
5. Consider the Fundamentals
While price action, and price history, can both provide useful insights into an investment, you also want to pay attention to the fundamentals. Fundamental analysis is a “big picture” analysis of what is happening with an investment. You can use this type of analysis to identify trends in an investment. Some of the items to consider might be:
- Global trends
- Industry growth
- Geopolitical situation
- Company management (for stocks)
- Profit margins (for stocks)
- Macroeconomic factors
Look at these underlying factors to get an idea of what might coming in terms of what’s next for the investment, and then decide what is likely to have staying power.
6. Make Investing a Habit
One of the best personal finance lessons to learn is that investing needs to be a habit. Get in the habit of setting aside money to invest each month. Use dollar cost averaging to buy shares with every paycheck. Make it automatic, and your investment portfolio will grow without you needing to think about it.
7. Stick with Your Plan
Finally, don’t panic. Batman tries to be calm and cool, doing what needs to be done. If he sticks with his investment plan, he should be able to purchase a whole range of sexy new rubber outfits. Of course, sticking with your plan doesn’t mean stubbornly pushing through when it’s not working. Luckily, Batman knows how to tweak the situation when needed.
Image source: Joy Acharjee via Wikimedia Commons