NURTURE PORTFOLIO LIKE A GARDENER

                                      NURTURE  PORTFOLIO  LIKE  A  GARDENER

             

                     

Can we make an analogy between an Investor and a Gardener?  Of course, the answer is emphatic 'Yes'. To my mind, there are numerous features/traits that a gardener and an investor have in common. A gardener nurtures plants as his babies with love and affection.  A total dedication, indeed. For him gardening is a source of motivation, meditation and peace of mind. At times, source of livelihood too. His perseverance and  patience bears fruits at appropriate time.

2.Portfolio for an investor is akin to a beautiful garden  Investing in market to build a healthy portfolio is just similar to an exercise to purchase, collect saplings and plant them in the garden. He has to select and nurture his portfolio with  utmost care so as to reap benefits over a period of time.

3.Since I  am passionate about  Apartment Gardening   as well as  interested in stock market, it occurred to me, it  would be enjoyable/ fascinating  to draw a parallel between two activities.  To start with, I would like to list out a few vital aspects  that  are absolutely necessary for maintenance of garden. From the gardener perspective, following stages are to be taken care of:           

           (i)   adequate good knowledge about  plants

            (ii)  procuring quality  seeds/ stem cuttings from a healthy                         plant or saplings from a nursery for planting  

           (iii)  preparation or arranging Potting Mix i.e. growing media                      for plants

           (iv)  water requirement, exposure to sun, timely application of                   fertilizers (organic or otherwise), nutrition and mineral                        are of paramount importance  to ensure proper and                               healthy growth 

             (v) timely pruning and trimming and application of                                    pesticide/insecticide etc.                 

  4. Now let's see how  activities for gardening  mentioned above can be  co-related and applied in building a robust investment portfolio. 

 5. A gardener is suppose to possess good knowledge and understanding of  plants. In the same fashion. prior to selection and acquiring of any scrip, an investor is to study the  relevant sector, industry and concerned  company to look forward to build a healthy portfolio.

  6.  As a basic raw material, procurement of good quality of seeds/ healthy cuttings or saplings from a good source is must  for plantation. Growing media as discussed above is equally vital to help the plant  to grow strong and happy. Similarly,  for investor is to build  portfolio based on sound selection/identification of shares. He has to take into account various  financial parameters/ fundamentals such as  PE, Book Value, Pedigree and track record and ROE etc.  Thereafter, his decision  to enter the market is crucial. 

7. Investment in equity, debt, gold and in different financial assets by an investor is  an exercise comparable with the plantsman acquiring variety of plants, herbs, vines and flowering plants etc.  Diversification is common and very important attribute for both the activities.  

8.  A 'plant lover' is well aware that on growing seeds/planting seedlings, nurturing is to play a pivotal role for sustenance health of garden.  He always keeps in mind that adequate exposure to sun light, proper and timely watering and application of fertilizers are critical inputs for overall healthy growth. A stockholder , as in the case of gardener, has also to nurture his portfolio carefully. Watching market conditions, prevailing economic environment, study impact of  Govt. policies  on  his holdings, diversification,  review of investments and timely balancing of portfolio, if need be. Entry and exit from the market is another decisive aspect in nurturing of one's portfolio.

10.  Timely pruning and trimming of plants, as we are aware, is an key exercise to make garden bushy, healthy and beautiful. Further, spraying   disinfectants to guard  against  attack of pests and insects is another vital aspect to nurture and  take proper  care of the plants. Similarly, trimming and  weeding out laggard  scrips and at the same time cultivation and addition of performing assets, by an investor, is bound to create  optimal wealth/returns from his portfolio.

 11.To sum up for nurturing one's Apartment Garden (i) attractive  (ii) to give  it a lush green outlook  (iii) to collect/pluck flowers for his daily puja and to reap other benefits, a plantsman not only be knowledgeable about plants but passionate about them too.  He has to invest plenty of his time, attention and efforts in pursuit of his goal. Perseverance is crucial to be a successful gardener. 

Like a successful gardener,  becoming a successful investor takes time, efforts and a continuous learning. There is no shortcut to achieve success. He is to be a disciplined investor like a gardener. Analysis of market data, financial statements & economic indicators, to keep watch on market trends and new investment opportunities are the tools for  nurturing and building up a healthy and robust portfolio. Only then he can reap good returns on his investment  that would eventually lead to wealth creation. 

     YOU REAP AS YOU SOW

                            IS COMMON FOR  

          BOTH INVESTOR AS WELL  AS GARDNER

                                                  @@@@@