Do you back the jockey or the horse?

This question arises often when investors are learning the ropes, cutting their teeth and choosing their own style of investing.

When we talk about the jockey and the horse in the context of investing, we’re referring to the founder and C-Suite management team (the jockey) versus the Business Model (the horse)

In many ways of course, the answer to the question we’ve asked is – “both”, but in the early stages of the company we’re considering, the experienced investor would tend more to back the jockey.

Why the jockey ?

If a new venture has little track record but a team of experienced entrepreneurs and business builders around it, then for many investors the risk is lower than the alternative and the rewards is equal or better.

The alternative I’m talking about that we see a lot of, is where a good business is scuppered by poor execution, incompetent or inexperienced management. This often comes about by a founder seeing a good business and attempting of copy it, but without the wisdom and knowledge of the team behind the original business. That way lies all sorts of bumps and crevaces inthe road ahead!

In the worst cases we see unethical or illegal conduct amongst management teams. No promise of riches or future glory can rescue a business from that tragedy.

Only as good as the team …

When we’re sizing up an investment opportunity, it’s really about the jockey, the horse – and the teams around both. Those behind the scenes supporting the company operations and their strategic direction.

This is why real Due Diligence and Investment Research should always take great care to investigate the backgrounds of all the key individuals within a growing and ambitious business seeking your investment.

An that is why over one-third of our company research resources at Diligent Eye are focussed on those individuals. We can promise you that this is time and money well spent, since it has proven to be one of the most accurate indicators there are of failure or success of Alternative Investments in unlisted companies.

Finally here’s some further reading – whether you’re considering a significant investment in a new company or just looking to build your own investment research toolkit (we can help you with that too)…

Meet the Resilient Investor

We’ve all be through a lot, these last few months.

Our own journeys will have all been different, and there’s no doubt it’s been tougher for some than others, but we each share a resilience that has seen us through for better of worse, and one that we now know we possess within us. And that’s resilience: it’s what keeps us fighting and it’s vitally important for our health and well-being.

What exactly is resilience?

Here are two definitions (Courtesy the Lexico online dictionary):

  • the capacity to recover quickly from difficulties; toughness.
  • the ability of a substance or object to spring back into shape; elasticity.

Resilience in troubled times is an important skill to strengthen and develop, not just against something as significant as a pandemic but for the normal challenges that life throws at us.

Who is The Resilient Investor?

It’s really helpful to look at the qualities of resilience and how can these be applied to help private investors keep their heads in tough times and keep on building their assets.

Resilient Investors…

  • are willing and able to roll with the punches.
  • are prepared to change tactics and maybe strategies when the unexpected happens with world events
  • will always keep to the guiding principles of the investment giants as well as those they have agreed with themselves.
  • don’t panic – this too will pass.
  • are strong but recognise their humanity. We can all make irrational decisions under stress, and pandemic lockdown has created in many an underlying layer of “white noise” stress that may go unnoticed but can influence our actions in subtle ways. This doesn’t in itself put a halt on investment research and activity because they realise the effects and compensate.
  • get help when needed. A second pair of eyes, a sanity check on their decisions before they make them, from people and services they trust.
  • look after their own well-being. For many more reasons than financial of course, but keeping one’s investment head in a time of crisis is a true test of resilience.
  • work on their strengths. There is no resilience mountain top: this is a journey throughout life.
  • plan for and endure the financial “rough going” along with the good times!

These are just some of the characteristics of a resilient investor. Resilience is taught, learned but most of all experienced – it’s a lifelong journey. The silver lining in crises is that whatever the good, bad or ugly comes out it, our mental resilience grows stronger and prepares us better for the future.

Wishing you strength, courage and ever-growing resilience!

Raise a glass to the Glorious Failures…

So many big winners in life and finance today were big losers once.

It really is OK to make mistakes – even costly ones – as long as we don’t make the same one twice. We all fail from time to time and on each occasion this is an irreplaceable opportunity to learn and improve. As many of us will testify, the real challenge is finding that lesson and acting upon it. I hear you.

Be encouraged : If you have ever lost big, it shows that you have the nerve, the courage and the temperament to succeed: You have what it takes: you have what they used to call the Right Stuff.

it’s vital to always be learning, always scrutinising what we do and why. Our confidence to get back up again after a fall comes with the knowledge that we are changed by the experience.

Successful Investing

When it comes to winning or losing big with investing, the difference that makes the difference is all in the preparation.

And that, my friends, is all about Doing Decent Due Diligence.

Investment research can be a lonely and uncertain game for those without the time, in-depth knowledge, hard-knocks experience or the inclination to do it. That’s why Diligent Eye are here: to help investors avoid the pitfalls, provide the early warnings and the green lights and aim to help transform erstwhile losers into habitual winners.

If that’s you, we’d love to chat. Just drop us a message and get in touch.

So here’s to the Glorious Failures!

“And while some may see them as the crazy ones, we see genius. Because the people who are crazy enough to think they can change the world, are the ones who do.” – Steve Jobs

Zeros, Neros and Heroes

In the seemingly endless days of “lockdown” gone by, I’ve been thinking about how challenging times reveal true character.

The overriding feeling that stays with me is that sense of community and kindness. Whether from friends, family, colleagues or strangers, these characteristics seem to grow out of the sense of common purpose we’ve shared.

But sadly, we’ve also seen very public examples of following the instinct of self-interest at all costs, and those under the radar exploiting and creating victims of others.

Continue reading “Zeros, Neros and Heroes”

Prevention is better than cure – the cost of research compared to damage limitation

Prevention is Better Than Cure

My first career was in software development.

Here I learned fast that finding and fixing a software bug whilst writing the code was 10 times cheaper than finding it while testing the code, and 100 times cheaper than fixing it once the application is released and live to customers.The old adage is true – prevention is better than cure. And when there is investment capital at stake, it couldn’t be more true.Continue reading “Prevention is better than cure – the cost of research compared to damage limitation”

Welcome to Diligent Eye

To all of you interested in Alternative Investments.

We will not sell you an investment, but we will make you a more informed buyer.

A quick word from our founder about how we can help you get more confidence about potentially lucrative investment opportunities in today’s marketplace…

Founder & CEO Graham Turrell with an invitation

Subscribe to our blog here :

 

Graham at the London Hyde Park Property Meet

What a great evening we had! Graham from Diligent Eye was co-speaker with premier crowdfunding platform Brickowner’s Gareth Ship, on the meaty and crucial topic of Due Diligence in property investment, under the banner of ” How to Invest Skillfully – Every Time”.

Members seemed to very much enjoy the presentations, with lots of questions being asked, and some very engaged networking that followed over the food and drink that followed!

I was wonderful to meet old friends there and of course make some new ones, and we look forward to keeping in touch.

Our thanks go to the Hyde Park Property Meet and the Thistle hotel for their hospitality and for putting on a fun and vibrant event.

Follow Diligent Eye on Facebook, Twitter or LinkedIn and we’ll be sure to let you know of forthcoming events.

Graham speaking at the London Hyde Park Property Meet in November

Hyde Park Property Meet - Thistle

Those near Central London looking for ways to increase their property and investing knowledge and skill, are congregating at the next Hyde Park Property Meet, on Tuesday November 26th at 6.30pm. Sold out well over a week before the event!

For us this is a superb opportunity to promote the values of Diligent Eye along with other industry experts focussing on the skills needed for safer UK property investment. It’s looking like the event is sold out, but rest easy: I’ll publish the presentation online for you afterwards.

Why I’m keen :

We all want to invest safely and confidently. My mission is to reach out to investors, brokers and product providers about the crucial skills of investment research, which can make the difference between a rocky, or a highly successful investing experience. 

Attendees will learn tips on how to create their own watertight investment screening process for safer and well-informed investment choices – every time.

Discover more about the event and the speakers.

I’m really looking forward to meeting some great people at the event and I’m told there’s plenty of opportunity to network over buffet and drinks afterwards. Cheers!

Case Study: when investments go very. badly. wrong.

Learning from the Lessons of Failure

The recent collapse of the FCA-regulated firm London Capital & Finance PLC (LCF) and the resulting fall-out for a large swathe of unsuspecting mini-bond investors has personal stories of human tragedy.

Here’s just one very sad example:

BBC News : ‘My life savings have been wiped out’…

What can would-be investors learn from this: how could the damage have been avoided or prevented?

Continue reading “Case Study: when investments go very. badly. wrong.”