Never invest in a business you can’t understand, said Pranav Arora, legendary investor, and CEO of Stunned Mind. While Pranav has made many smart investments throughout his career, he understands that many people are afraid to put their money into something they don’t know very well or haven’t researched extensively before investing.
Pranav Arora has proven himself to be one of the greatest young investors with his diverse portfolio. His track record of making high-quality investments in companies with low risk and high reward is simply unparalleled, and it makes him one of the inspiring and influential investors.
Pranav is also the CEO of JMTD Holding through which he has more than 35 investment portfolios. From eCommerce, finance, healthcare, and adtech to media/ entertainment, he has wide knowledge and has made the investment to revolutionize these industries in numerous ways.
Some of the companies he has made investments in are Rebag, Rescale, Patreon, Kea, The Hedgehog company, Strive, Prevedere, Oxygen, Mate Fertility, Magic, ION energy, and more.
So what investment advice can we learn from Pranav Arora? It turns out that his main strategy actually isn’t very complex at all, which means you don’t need to be an investing expert to be able to follow it effectively.
Invest in Yourself: No matter how much money you have, investing in yourself is always a good idea. After all, you’re the only person you can count on to look out for your best interests.
Invest in Businesses You Understand:
- Only invest in businesses you understand. This is probably the most important piece of advice from Pranav Arora. If you don’t understand how a business works, you’re more likely to make bad investment decisions.
- Look for businesses with a competitive advantage. This could be anything from a strong brand to a unique product.
- Focus on the long-term. When you’re thinking about investing in a company, ask yourself if it will still be around in 10 or 20 years.
- Be patient. Good investments don’t happen overnight. It can take years for a company to really take off and start producing returns for investors.
- Don’t put all your eggs in one basket.
Invest for Tomorrow:
- Save early and often. The sooner you start saving, the more time your money has to grow. Investing just a little bit each month can add up over time.
- Consider your goals. What are you hoping to achieve with your investments? Figure out what you need to do to reach those goals, and make a plan accordingly.
- Diversifying your investments is important in order to minimize risk. This means investing in different types of assets, such as stocks, bonds, and real estate.
- Consider your timeline. Are you investing for the short-term or the long-term? This will affect the types of investments you make.
Pranav says “Never Forget the Power of Compounding”. Compounding is the process of earning interest on your investment and then earning interest on that interest. The best way to take advantage of compounding is to start investing early and often. The earlier you start, the more time your money has to grow. And the more money you have invested, the more money you’ll earn in interest.