6.5 Work with a Coach-Partner for Results and Mastery

 

You often need help in areas that are important to you but you don’t have adequate knowledge, skills, resources, and time to manage it well. You need this even more if you don’t see yourself fully equipped to handle this any time soon.  Just like you need expert advice from a doctor, lawyer, accountant, you need advice for investing your hard-earned money. While this is necessary it is not sufficient to enable you to reach Financial Freedom come what may. 

 

I answered this in the section on Strategy under chapter 4.12: Invest in Equity in a way that ensures your success today and, in the future. The key question we addressed there was how do you ensure you meet your goals eg the desired rate of returns over long periods of time when you do not control what can happen. If anyone is guaranteeing this, he is taking you for a ride and is violating regulations laid down by SEBI. 

 

However, you need a way of achieving this and the answer you have seen is Investing Systematically: When your Investing Strategy is to Invest Systematically it means you follow a Process and have a System that enables you to implement the Process. More importantly it enables you to check and analyze the performance and improve the Process and the System. Essentially it enables you to do the PDCA cycle completely. 

 

The PDCA cycle, Plan-Do-Check-Act Process applied to your Process + System is what delivers results. It also enables continuous improvement in how you invest. It is in-fact a Learning Cycle and for you the route to Results and Mastery.

 

Investing Systematically = Process + System + PDCA =>> Results + Mastery. 

 

Or Investing Systematically = (Process + System) ^ PDCA =>> Results + Mastery.

 

Because PDCA helps you implement the Process, use the System more effectively and continuously improve both which really gives compounding benefits and hence is much more than simple addition. 

 

And that is what your Learning Strategy-Stage 2 should aim to deliver. But it requires much more than a traditional Investment Advisor. It requires your Advisor to be your Coach and Partner. Let’s understand this better.

 

The guiding principle for getting and also giving such advice is that the expert must not have any conflict-of-interest. That is the advice giver must not benefit from the actions taken by the client on the advice. 

 

So, a regular stock broker cannot be your stock adviser and help you build and manage your portfolio because they would earn money in brokerage when you buy or...........Read More

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