Dec 03 2009
Investment Strategies.
According to legend, the warlords Liu Bei and Sun Quan successfully thwarted the ambitions of greedy tyrant Cao Cao, who wanted to conquer the land south of the Yangtze River in its efforts to reunite the Eastern Han Dynasty. From the film, we can learn that the battle is won by the detailed planning, understanding the terrain, the proper use of tactics, as well as the right to place people. Tactical brilliance and strategic superiority of these tactics are still applicable today.
Investment strategies
A successful general knows that there is a difference between “war” and “battle”. In the modern context, we can refer to a “war” as the effort to achieve our ultimate goal and vision, or the reason why we make the investment. This may be a pension plan, saving up to university education for their children or to achieve the desired financial independence. It is not surprising that the involvement in the financial investment is also known as Strategic Planning.
On the other hand, the “battle” can be seen as “tactical planning”, which we will place a control or manage crises that occur from time to time. Most of us during our life is focused on the fight and even won the battle. However, it is important to periodically step back and see the reasons for investment. This will allow the light of changes and more effectively manage the flow of “war”. For example, in difficult times, we tend to adopt a more defensive approach by allocating more of our investments in bonds and money market funds. When the market is showing signs of recovery, we will charge forward in a more offensive mode, returning to the stock market in tranches. Knowing when to switch modes akin to the understanding of how the battle to win the war.
Strategic Alliances
Another indicator we can pick up from the “Battle of Red Cliff” is that the importance of forming strategic alliances in order to maximize each other’s strengths and weaknesses. Military advisers Zhou Yu and Zhuge Liang formed an alliance to outwit Cao Cao and win the battle. Similarly, we can work together to discuss and establish the best way to deploy funds in the assets and the right sectors, in order to place them on the market recovery. As depicted in the movie, when the East winds blows, like ours, we are ready to set sail and conquer.
Building trust and relationships
Cao Cao, with all its military might, fell to the plot Zhou Yu and beheaded his Commander in Chief of the Navy. This impulsive act would later prove to be very costly, because it would lead to him losing the battle. The lesson here is that trust is really important in all relationships and alliances and solid, reliable relationships can produce results that are greater than the sum of its parts.
We believe that in order to be successful and appropriate actions should be implemented in the correct order. In response to the global economic downturn, the Government has already demonstrated its “resilience package” to Singapore. You have prepared your own personal “resilience package”?
Unite with us and let us help you review your finances and ready your plans “Battle”. Contact us today for advice on how to win the “war”.
No matter if you are 20 or 50, any time in your like is ok to think about financial planning.
BTW, financial planning is not boring, it is not a duty. And those people who started to think and act about their financial planning are very likely to be well prepared for the future.
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