Sunday, April 6, 2008

From Seeds to Fruits

I was grown up in farm. My family is doing business in agricultural sector, planting vegetables, flowers, and fruits. I grow up together with lots of plants. Plants are my friends too.

Do you ever know that how a tree grows? If you given a seed, how are you going to grow it until you get the fruit? Investment is similar to growing a tree. The different is you grow your seed capital. There are lots of knowledge involved, lots of patients needed, and lots of cares have to take in.

First, before we plant a tree, we have to prepare this not we plant today, we can get the fruits tomorrow. Therefore, choose the seeds carefully. If want to get Orange why I start with an Apple seeds? I don’t talk about the quantity here because if you want to get more, what you have to do is start with more seed and bigger land area.

When we choose a suitable seed, we have to let it germinate. Then sprout out from the ground. For investment, we choose a right company, and then we invest our capital. For those involve in the management, they have to go through lot of challenging to grow their tree or company. We as an investor, if we don’t know how to grow a tree or company, we need a good farmer or good management team.

Bear in mind, when a tree grow, there are lots of uncertainties that may influence the growth of the tree. There are climate changes, soil, intruders, resources scarcity, infection, and so on. A good partner or management team is definitely important for any kind of business.

Looking at seeds growth bigger and bigger, it starts to bloom. After flower is the fruit we get. Whether the fruit tasty or not, fruitful or not it depend on all the effort of the management.

Investment is not gambling. We don’t expect we invest today, can harvest tomorrow. If our investments suddenly shoot up so much, we can take profit because it might probably drops again due to the psychological effect. We can buy back at lower price instead of looking at our investment ups and downs.

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