Invest your time like you would invest your money- In the places you will get the best return.
I want great returns on my investments. I can get that in a couple different ways:
First, I’d look for stocks that have a good rate of return. Steady performers that have good growth and a solid balance sheet. My buy in cost will be higher here, but the return will be steady and large.
Next, I’d scout for the next big performer. I’d look in the middle of the pack for companies that have a great profile, good potential, and require a moderate investment. I’d love to discover the next Amazon, Apple, or Keurig and watch it grow.
Last, once in a great while, under the right circumstances, I may throw a few dollars at some penny stocks and hope for the best, but I’m certainly not going to build a portfolio around them. I also want to be well aware of declining stocks, sucker bets, poorly run operations and shady companies that are looking to consume my resources and sap my positive outlook.
Leaders, how are you investing your time?
Are you spending all your time with penny stocks? I hope not, but the reality is that many are. Sadly, many leaders feel they must fix what is broken and in doing so, they neglect the best performers.
We wouldn’t invest in a plummeting stock, right? But we will give up an entire Tuesday to spend with Bill, who hasn’t hit his number in three consecutive periods. Meanwhile, Tracy, one of our President’s Club winners for the last three years is left alone. (‘Surely, she’ll call if she needs something’.) Absurd.
Your time is the equivalent of your investment dollars. You only have so much to invest. It is your job to maximize the return. You owe it yourself, your company, and your people to make wise, well thought out decisions about how you will invest.
Investing in your high performers costs more. You have to prepare better, you will need to clear bigger obstacles, and you will have to work really hard to get them to higher growth numbers. At this level, even a modest return is huge dollars. They also constantly perform, year after year after year. 20-40% of your investment should be made here.
Your mid level people should be mined for gems. Make consistent investments in this pool and you will not only find your next star, you will likely see great returns. Overall, we are in it for the long game, but stay aware of market trends that may cause this group to fluctuate- you may see something that is worth heavy investment for a large, quick return or you may find yourself in a position to offload some deadweight before it drags your portfolio down. You will spend the majority of time managing this group so you can stay nimble, informed, and can make needed adjustments. Plan on dedicating 40-50% or your investable time here.
The remainder is yours to spend as you see fit. Take some risk, invest in a penny stock here and there if you like. There’s no harm in taking chances provided you aren’t betting the farm. Whatever you do, stop making investment in those who are showing a consistent, downward trend. Know when to call it a loss. Pay the brokerage fees and sell them off. Your team will thank you.
Go look at your calendar. Look at how you’ve allocated your time this week and next. Make sure you are investing your time like you’d invest your money. Leave the penny stocks for newer investors. You go make wise, thoughtful leadership decisions about your time that will get great returns that will provide for a comfortable retirement.
Let me know if I can help.