Ashley Lightspeed knows that making suitable investments is tough. There are many different points of weakness and attack vectors. For Ashley to do her job well, she must make sure to be on her A-game at all times. This nature of being always in the know and up to date in the latest trends, patterns, tools, and other key aspects is important to refining and being the best she can be in her work.
She may turn to different leaders in the space to see their different thoughts as well. Here are a few principles espoused by other leaders in the investing game. Learn more about Ashley at techcrunch.com
Know the Nuance
When a person understands the investment landscape, they know when one thing is a great investment, and when it isn’t. They know when they are paying too much and when they are obtaining a great deal. This knowledge comes from being in the game for a while and learning each and every aspect of the situation. For Ashley Lightspeed, it might be looking at the cashflows of the company, where it is at in the market cycle, where the company might have weak points, the strength of the team and the nature of success for that company.
Knowledge is essential, and patience is too. The idea is not to be reactive but to have a comprehensive understanding of the market to see likely potential scenarios and how to negate unwanted events and maximize positive ones. Being reactive may incur more transaction costs, which can lead to lesser returns. A company may be highly-priced by investors, but this does not indicate any real value. As such, proper patience is necessary to maximize the possibility of returning alpha.
Past Performance is Not Indicative of Future Returns
Ashley Lightspeed may realize the importance of data when making decisions. Investing is hard because prior successes may not indicate the ability to create another successful product. Situations might have changed. Dynamics in industry, in an individual, and consumer tastes may change. As such, investors should watch and understand the current data in the shift to the future. Business cycles are a key aspect.