Good cash flow is likely to be drawn

You are more likely to be attracted to properties if you have an affinity for them. Shares are likely to be drawn to you if you have a love for them.

Good cash flow is likely to be drawn to you if you have an affinity for it. Good capital growth is likely to attract you if you like good capital gain (but not necessarily good cash flow).

Spending more time and effort on something can improve your affinity to some extent, but there are some things with which you have a natural affinity. You should go with these because they come easily to you. Can you imagine how much work it would take for a shark to change into a sardine or vice versa?

We have spent a lot of time lately working on our clients’ cash flow management because it is unlikely that our clients will have good cash flow from their investment properties if they have low affinity for their own family cash flow. Keep in mind that it is a natural law that like things lead to like things. Poor

cash flow management at home typically leads investors to invest in businesses or investments with poor cash flow.

Have you ever pondered the reason why some of the world’s most successful investors, such as Warren Buffett, only invest in a select few highly concentrated areas with which they have a strong affinity? He has more money than most of us, so he could afford to try a lot of different things. However, he sticks to the few that have worked for him in the past and cuts out the ones that didn’t work, like the airline business.

What happens if you have never invested and have no track record? In this instance, I would advise looking first at your parents’ investment track record. Even if you don’t like to admit it, you probably share some traits with your parents. Examine whether your parents’ family home has performed well if you believe they have never successfully invested in anything. Alternately, you’ll have to conduct your own experiments to figure out what works best for you.

There will undoubtedly be exceptions to this rule. In the end, only your results will determine which investment is right for you.