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Here are 5 possible drivers behind investment decisions

Good investors shape their goals and objectives to control the market, while successful investors let the market take control.

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When making investment decisions, oftentimes, the primary goal is to make a profit. But beyond this, there are also those who are heavily influenced by the desire to do social good and to add value to our everyday lives.

Why do investors back certain projects while rejecting others? Here are some possible reasons:

1. Supporting innovation and growth

Startup owners come up with ideas, but the investors usually evaluate the idea and put their money behind it. One of the biggest motivations for any investor is the opportunity to support the natural process of modernization and growth in our society.

2. Achieving status

Investors often look for status. Many of them want to be the next big thing. The dream is to be the one to find the future Mark Zuckerberg and support him in building a giant company like Facebook. 

3. Creating connections and building a network

Investing can help foster connections between like-minded people who are interested in the world of business and finance. By building a network of innovators in the industry, investors gain more knowledge through insider information, as well as sharing of experiences in the field.

It is said that investors are driven by two values: greed, in wanting to make profits or fear of losing money.

Some investors are driven by two values: greedin wanting to make profitsor fear of losing money. (Source)

4. Driven by fear or greed

It is said that the best investments in the world are made either out of fear or greed. Greed because they want to make big money with little investment, while some investments are made out of fear of losing money.

5. Achieving financial freedom

Financial freedom is a buzzword in the realm of investment and personal finance. This is achieved when you are earning enough money to pay off all your debt and expenses and have sufficient funds to take care of all your future needs.

Keep yourself motivated

Tony Robbins, an entrepreneur and philanthropist, believes that “successful people ask better questions, and as a result, they get better answers.” However, it may take more than motivational quotes for investors to make their decisions. It also involves developing an investment philosophy, a strong mindset, and a set of core beliefs.

If you are an investor, it is important that you find what keeps you going—and what is important to you. Then, factor that in your judgment moving forward.

DISCLAIMER: This article expresses my own ideas and opinions. Any information I have shared are from sources that I believe to be reliable and accurate. I did not receive any financial compensation in writing this post, nor do I own any shares in any company I’ve mentioned. I encourage any reader to do their own diligent research first before making any investment decisions.

Adnan writes on Small business, personal finance, startups, success, and productivity. You can read his regular blogs at The Success Element.

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