Building Your Keel before Erect Your ship

I am hull structure engineer for shipbuilding. I find it interesting to explain the financial aspects by related to engineering approach.

In ship construction, the most important part is keel. It is the back bone to the ship. The stronger the keel, the bigger the ship can be erected.

Same apply to financial intelligent. Most of people are easily fall into the trap of what investment you should invest rather than what kind of investor they want to become. When come to a bad deal, people tend to blame the investment. But, the truth is, you as the investor is the one who choose the investment. Regardless what you are invested in, if you are a good investor, the deal will work. Contra to that, if the investor him or herself is not competences, the deal will not work.

By hastily choose a investment portfolio to invest in without doing your home work, is like erect a ship without the keel. Imagine, if a ship is built so big, but without a strong keel support, the ship will failed. And it will failed hard. It is why, there are some armature investors who purchase a good well run real estate, but run it to foreclosure. Like the it is said: " an idiot is an idiot regardless what he or she invested in."

By building a strong keel, or metaphorically mean building up your financial literacy, is the key of the success in business world. The ship might failed, but the keel will not, which you can erect a new ship again even though you failed. The true investors focusing on how to become a better investor, the average investor only focusing on money. It is the "how-do" that make the different. Ask yourself if you lost everything you owned today, can you or do you has the confidence to make it back in shortest time? Do you has the "how-do" answer? During early 1900s, when Henry Ford was a Millionaire, people ask him if all his wealth is taken away, his reply was:" no problem, I'll make it back in less than 5 years!" - That's is the power of know "how-do". The power of building your strong keel before erected your ship!

*Acknowledgement for Friend of mine Mr. Zaidi Adbul Karim of his explanation of Shipbuilding