Running & Investing :Creating Moat

Wikipedia defines Moat as a deep, broad ditch, either dry or filled with water, that is dug and surrounds a castle, fortification, building or town, historically to provide it with a preliminary line of defense.

A runner can’t simply run all seven days in a week with the intention to improve performance; run fast or cover longer distances in quickest time. They have to develop “Runners Moat” which is the core or basic fuel required for efficient running engine. This core strength is the first line of defense from injuries & performance issues.

Few ways runner’s can build a moat:

· Cross training

· Adequate hydration

· Right nutrition

· Speed drills

· Well rested body

Developing moat creates a competitive advantage which, in turn assists in delivering desired results.

When it comes to investing for goals, individuals completely turn a blind eye. Minimal attention is paid to process & planning for investing their hard earned money.

Over the years I have realized bias for particular asset class as an investment to fulfill financial goals. These individuals primarily follow herd mentality; for instance the approach here is “What’s good for Mr. Kumar will be good for ME!”

One needs to understand every individual is different and you cannot have one “asset class fits all” approach for achieving financial freedom.

While investing, one needs to ask few questions to create a moat for self.

· Why am I investing? ( Goals – For children / vacation / new car / retirement etc?)

· What is my time frame?

· Is the investment liquid?

· What if my investment goes under water?

· What if I lose my job today?

· Have I set up a liability / risk management / contingency system in place?

· Do you have a succession plan in place?

Have a moat and it’ll become your first line of defense against any unexpected or unforeseen event.

Content : Ajit Kaushal