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Why lose money by yourself, when you can do it together.
A set of secondary characteristics when investing money, be it in a business or the stock market, is having a team of other investors in it with you. Let’s break down a bit of the psychology.
Trio in Brno, Czechia
In the Brno main train station or more locally known as myši díře (mouse hole), I passed a trio of cello players. Each had their own role to play, whether synchronizing, harmonizing, rhythm or melody. Together, their goal is to play in perfect harmony. And when they do not sound in perfect harmony, that’s ok because they are in it together.
In business, harmony = complementary strengths
Famed clinical psychologist, Dr. Jordan Peterson, sheds more light into teams working together. There are two main types of people who will help a business succeed: conscientious people and open people. And investing is like a business.
So can you find the right teammates with complementary strengths?
An underappreciated aspect of working in a team is the ability for the team to make decisions. There is a difference in how you pose a question and what answer you will receive based on the decision-making personality of each team member.
For instance, one team member can make more effective decisions based on bottom-line results if the question were posed like: “Here are option A, B, and C. Option A is the least expensive and option C is the most expensive. Which option would you like?” Bottom-line team members like options in order to make decisions.
Or if a team member is more extroverted, then the same question would be asked: “Option A is supported by Congress. Option B is supported by your father. Option C is supported by the Medical Association. Which option would you like?” Extroverts tend to make decisions better when there are voices of authority.
Try this at home
Next time you are with friends and family, try to be aware of how they make decisions. You can do this by assessing what question do they need answered in order to make a decision.
Do they need to answer the question of what?
For instance, what is a better investment, option A or B? (Provide alternatives.)
Do they need to answer the question of how?
How will you accomplish the investment goal? (Provide data and evidence, and how systems and processes work in order to answer this question.)
Do they need to answer the question of why?
Why investing in Facebook is the right decision? (Provide a strong argument and be prepared to have your facts and ideas challenged.)
Do they need to answer the question of who?
Who else is investing? (Provides sources of respectable authorities.)
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