‘Its our problem-free philosophy Hakuna Matata’.
In 1994 Disney (Lion King) introduce one of the best catch phrase which we use once in a while in our conversation to elaborate on the chill-pill alternative. If children and kids were allowed to invest on stocks and shares supported by their own research and justification, they will be more successful that any fund manager in the world. They basically posses the spirit of Hakuna Matata with no worries on the investment they commit to.
The common fear of calculated risk 100% loss of capital in equity/share/stocks investment have put many potential investors off their game. Putting your hard earn money and savings to generate an income without fear is indeed a difficult task. The rear view mirror is always clearer than the front view. Its easy to look at historical trends and wish you had made a certain investment at a particular period in your life time. When placing your investment many hesitate unfortunately.
Lets review the five rules of how to be a Hakuna Matata Investor.
It takes time, experience and market upset before an individual investor understands the need to be a Hakuna Maratha investor. Let me share two love equity that got away.
1. TTWO bought at $21
I have always been a gamer and have contributed into the industry for at least 20 years as a consumer. I am a walking video game encyclopaedia and would rate TTWO highly due to the quality of their games and catalogue released in a timely manner.
I took the decision to place a good portion of my money into TTWO over EA and Activision.
My shares rose up at least 60 percent and I decided to let it go for profit and hope to catch it again when it drops. When I parted with TTWO at $33 simply because I notice EA and Actvi was not doing very well and suspected the same could have happened.
Today TTWO is almost $90 about 18 months after I released the shares. I was worrying too much and trying to anticipate too much at that time. I forgot the key reasons why I bought TTWO in the first place.
I lost my potential quadruple bagged!
2. Glencore @ 132gbx
Glencore was a mining company consolidating and reducing its debt during the worse possible time when I purchase the shares. The commodities and Chinese market crash in 2015 sending the Glencore shares to almost 50gbx. I was reading the news everyday and kicking myself. I was too bothered by the noise and not getting distracted at work.
Within a period of six months the shares gone as high as 150 due to improving and recovering Chinese market. I sold the shares without a doubt. Now Glencore is worth 335gbx and could even go higher. Dividends have also returned.
I lost my potential triple bagged!
Always remember the reason why you invested in a company and remember that you are a responsible part owner of the company too.