Nature’s Master Class

It’s that time of year again where I spend hours cleaning up dead leaves only to find that 10 minutes later it doesn’t look like I’ve done anything. It’s time to plant the daffodil and tulip bulbs ready for Spring that’s if I want to have plenty of colour in the garden. Through January and February I’ll be pruning trees and preparing the ground for the spring growth. Come summer I’ll be able to relax in the garden knowing all the hard work has been done. In Autumn next year I’ll start the same process over again.

In the Southern Hemisphere the seasons are opposite. Family and friends are now enjoying the fruits of their autumn/winter labour with springtime colours in their garden as they head towards summer.

So, what does this have to do with investing?

Seasons in gardening can be compared to investment cycles. The bottom of the cycle is winter where you buy and wait for the investment to grow. Spring is the growth period where your investment blooms making plenty of money. Summer is the plateau at the top of the cycle. There’s still some growth in the investment but not a lot. Autumn is the downward slide where you sell the investment or hold until the next growth period. Regardless of which investments you have they will be in a difference cycle of growth or decline. That will occur at different rates in various parts of the world.

There are basically four categories for investing – Cash, Property, Paper and Business. Each having a variety of subclasses and each being in a different part of the investment cycle throughout the year. Some cycles can last for months while others can last for years. Your job as an investor is to monitor each investment so when the springtime growth comes you are ready to make the most of it.

So next time you are working in your garden don’t think of it as a chore or burden. Think of it as Nature’s Master Class in Investing.

Karen Newton is the founder of the Tiroka Brand. She is an Entrepreneur, Investor, Speaker and Author with her books available through Amazon. For more information about Karen visit www.karennewton.co.uk