If you are reading this, you are a CEO!
And if you haven't yet understood how much of a CEO you are, you will understand immediately after reading!
Shabbat Shalom, friends,
Have you ever asked yourselves what the difference is between real investors and those who think they are?
Let's open this matter!
The main difference between real investors and those who think they are is whether they see themselves as owners of the companies they invested in or not!
They think about their investments like CEOs, and not like 'let's make a quick buck'.
The reason I value the long-term investment perspective and pursue real value and a wide moat (at least in my long-term investment portfolio) is because I am a CEO!
The moment we buy a stock, no matter which one, we become owners of a certain part of that company. As smart investors, we want to be careful owners of that proportional part in the company we acquired, for the simple reason that we cannot control the day-to-day management and decision-making in the company where we acquired our proportional share!
As careful investors, we will look for a large margin of safety to protect the proportional part of the company that is now in our ownership!
The moment we are not looking to 'make a quick buck' but rather enter the right mindset, the CEO mindset, we will see ourselves from that moment on in a much better way, as owners of the business!
The moment we are in the CEO mindset, our focus changes. Our focus shifts from the stock price to the good performance of the company in which we acquired a proportional share, and to the long term!
Just like CEOs of investment firms, Altschuler Shaham, etc., each and every one of you has a super significant role that is sometimes neglected: you are the CEOs of your money!
Upon entering the CEO mindset, ask yourself guiding questions like a successful CEO would ask themselves!
Questions such as: 'What could go wrong?' 'How will I react if something goes wrong?' 'What are the risks?' 'What is the probability that these risks will materialize?' 'How significant are these risks?' 'If these risks materialize, will I be able to deal with them?' 'Who are the main competitors in my new acquisition? Can they harm my investment? And perhaps it's better for me to consider investing in them?'
And more!
It is always advisable to ask ourselves such questions before making the final decision, so as not to wake up one morning and discover that, in retrospect, they were always there, and we always chose to ignore them.
A successful CEO cannot afford to ignore!
Like a successful CEO, when making decisions in uncertain situations, you must always consider not only the probability of potential scenarios occurring but also the implications of these scenarios and the consequences of these outcomes.
Would a good CEO put money into a failing business? That doesn't make sense!
The same mindset should guide you precisely in your investments!
When I made my last 2 investments, I put on my CEO hat and thought, I only thought about the returns from the new acquisitions, I didn't think about the daily prices!
"Games are won by players who focus on the game, not by those who only look at the scoreboard."
If you can enjoy Saturdays and Sundays without watching stock prices, try to do the same for the rest of the week and focus on the essentials.
The new mindset will help you succeed much more and instill in you much more wisdom and confidence in your decision-making!
Roee