Investment Principles to be Applied Everywhere, Maximizing Profit and Safety

Four “Must Know” Investing Principles

Arsen Lupin by Ghibli Movie Studio

You’ve probably heard about financial freedom, financial independence, or fighting inflation or somewhere along the line. For everyone that have really want to achieve that, there are no better way to achieve that except investing.

However, investing comes with equal risk, as good as it gets, every investment have their own risk. Whether it is low risk, medium risk, or high risk. How are we supposed to invest then ?

There are four principles that I learnt from one of the richest person in Indonesia Tung Desem Waringin, which is :

1. Different Kind
   You should invest on different products of investment, don’t put all of your money in stock exchange, crypto-currencies, nor in property. You should divide your money on different investment products.
2. Different Class
   The next one is different risk and different liquidity class, for example property is low risk but also hard to liquid while in the other hand stock is quite liquid but high risk. Divide your money on different class, another example is don’t choose growth type stock, but you need to mix it with dividend kind of stocks and blue chips stock.
3. Different Places
   If you are really into property, always try to have different properties in different places. You never know what happen into that places, for Example you have a property in Jakarta, next try to invest in Surabaya too.
4. Different Time
   Never go all out at once on investing, try to divide your money on a different time such as different day or different month. This will minimize the risk and wouldn’t make you insane if you are losing money. Example is, if you have 100K dollars, try to invest 10K dollars per month instead of going all out investing 100K dollars in that month.

Other than that, you also need to balance your investment assets according to your own percentage and be discipline about it.

Diversify your assets into different product, class, places and time.