Opinion – Grain in Grain: Find out if you have an entrepreneur or salaryman mindset when investing in stocks

Consider an entrepreneur who opened a business at the end of November 2019, that is, thirty months ago. Usually, when starting a business, expectations are high. As well as for the one who starts investing in stocks. However, the entrepreneur knows that he will face difficulties along the way, but the same does not occur with many stock investors. I often say that the stock investor needs to have an entrepreneur mentality. But what does this mean?

You already know the evolution of our economy in the last two and a half years. Knowing this, what would you expect from the business and the entrepreneur in this period? Do you think he should give up now or have he given up before? Would you rather be this entrepreneur, or receive salary from him every month?

Those with an entrepreneurial mindset are optimistic by nature. Especially if it’s here in Brazil. However, don’t confuse optimistic with naive.

Despite having high expectations, those who set up a business know that they will go through difficult times, that is, they need to be resilient to withstand the volatility of results. You need to have patience and persistence to wait for these results to appear. And they can take time.

This entrepreneur also has to be flexible to change the pace of business with the fluctuation of the scenario and be constantly training.

Since November 2019, the main index of our stock exchange, the Ibovespa, has risen at times, plummeted in a certain period, recovered from this fall, but, in the end, nothing appreciated during the entire period. While those who invested in the CDI gained 12.3% in the same period, that is, an average of 0.39% per month.

Usually, the CDI yield is considered low, but it is like the salary, that is, it falls into the account every month.

Now reflect, how did you behave throughout this period that you invested in stocks? Have you had and still have an entrepreneur mindset?

There is nothing negative about being a salaried worker. It has many advantages. In many cases it is even better than being the entrepreneur, as well as for those who are conservative and who invest in fixed income. You will receive the deal every month.

Before investing, it is essential to recognize your investor personality.

This analogy is very important to avoid frustrations in risky investments. You cannot invest in risk and expect results in the short term. Sometimes it can take years. It might not even happen. A businessman knows this.

You need to know yourself and understand your investor profile. Knowing your profile, you will avoid the frustrations that usually occur with those who invest in stocks or risk alternatives, but have a conservative profile.

Michael Viriato is an investment advisor and founding partner of Investor’s House

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