Monday, March 13, 2006

Need for Speed – Formula 1 (F1)

A new season of Formula 1 began yesterday in Bahrain and the winner is Alonso who drives a Renault engine racing car. If you observe carefully, you would notice that the car is not the most powerful car in term of pick up, meaning that if the race is on the straight line course, the car will lose out in the race. This is because the most powerful car in term of pick up is a racing car powered by Mercedes engine. If Bahrain race course is a straight line course, without any curves, there will be no doubt that McLaren team will win in the race.

The observation could be apply in the investment world. Assuming the investment world is like a racing course and you are a driver of the car, by choosing the most powerful pick up car like Mercedes does not assure your winning. After all, the investment world is not straight line – it’s full of curves, holes, and your ride will never so smooth as riding on the well maintained tar road. Sometimes, you got to struggle on the dust road and when it’s a rainy season, the road will become more challenging as the road will full of mud. When this happens, insisting to drive F1 car on this road would be stupid or insane. Instead, you should change the car to 4 wheel drive car. By adhering to the blind faith would be disastrous. In the ever changing investment world, the one with Firm Character equipped with vast knowledge
would play a role – his investment objectives and visions would still intact but using his intelligence to suit the changing environment. Though, F1 is a race for speed but it does not mean you must accelerate all the times. By knowing when to break is as important as knowing when to accelerate. How to turn according to the curves is vitally important. When you go to stop pit to change the tyres, fuelling up the car are no less important. Only an experience driver knows this. Last but not least, knowing yourself whether possess a winning driver characters is important as well. The world is only one Alonso, if you want to win, leave the car to him. But, be careful if the driver’s interest is not aligns with yours.

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