What a novice investor needs to know, how to invest money to maximise returns, and how to properly assess risks. Advice from Marina Groenberg, an experienced investor.
Contents:
- First steps in investing
- What a novice investor needs to know?
- A 3D picture of the project
- Commitment and desire to learn as keys to success
Money must work. This is a short conclusion that can be drawn from any serious investment methodology. Of course, it is easier for someone in business to invest in developing their own company, but market conditions are very volatile. For example, immediately after the pandemic it was declared that the restaurant and hotel businesses lost profitability. Parallel to this, the golden hour for delivery services and online shopping arrived. This is why capital diversification (investing in different areas of business) is a necessity nowadays.
First steps in investing
Tactics and strategies for investing capital depend on the potential investor’s intentions and the amount of money available. There are two main ways of investing:
- Passive ? buying shares or bonds. The investor receives dividends, but there is a risk that the shares will fall in value
- Active ? the investor invests in a business and intends to take part in its development. If successful, returns can be higher than in passive investing. If unsuccessful, there is a possibility of bankruptcy
Passive investing is preferable for those who are not prepared to spend the effort and resources to immerse themselves in a project. Experienced investors combine the two options: buying shares and bonds while at the same time investing in their own start-ups.
A private investment fund can be set up if the amount of capital is large enough. It should be understood that insufficient capital investment will not lead to the development of the project, but rather to bankruptcy. Therefore, the amount of capital must be measured against the needs of the business or the start-up. If the potential investor does not have enough capital, there are two choices: to refuse to invest or to raise funds from other business people.?
What a novice investor needs to know
According to Marina Groenberg, founder of the private equity fund Hemma Group, an entrepreneur has to have a thorough understanding of the specifics of business. A diversified investor, on the other hand, is both a strategist and a tactician. You have to work in multitasking mode: constantly assessing risks, the state of the market, and being prepared to deal with problems that arise in different parts of the world.
Marina Groenberg believes that an investor needs to learn constantly. That said, Marina herself rarely reads books and articles by investment theorists, because every situation is unique and at the same time changes rapidly. The economist’s assertions that were true yesterday are now questionable. Marina prefers to rely on mathematical analysis, experts’ opinions and her own experience.
A 3D picture of the project
Before investing funds in a particular project, Marina Groenberg makes a 3D picture of it: she collects and analyses information about the business or the start-up and asks at least three experts with authority in the chosen field to give their opinions.
When making the final decision to invest, Marina bases her opinion not only on the experts’ recommendations, but also on her own intuition and moral values. Just as important as profitability is the moral satisfaction an investor receives from his or her activity.
Commitment and desire to learn as keys to success
Marina Groenberg’s biography is testament to her approach. In 2009, she and her husband founded Hemma Group, a private investment fund in Switzerland. The company invests in complex technological and cultural projects. Marina Groenberg is responsible for the successful Swiss Kopter Group AG project, working on a new generation of helicopters. The fund is actively investing in the French start-up, Tallano Technologie, aimed at reducing harmful microparticles in car emissions.?
The foundation’s landmark achievement is the restoration of the historic Italian estate Villa Reale di Marlia, managed by Marina’s husband, Henric Groenberg. A large-scale project, it requires serious investment and day-to-day administration, yet for Marina Groenberg the restoration of the Villa Reale di Marlia ? and the restoration of its historical significance as a cultural and social centre in Tuscany ? is more important than profit. It is a source of pride and emotional inspiration as well as a source of satisfaction.
Investing is an activity for motivated people. It does not matter what education an aspiring investor has. What matters is the desire to learn, grow, and dig into the details of businesses and start-ups. Successes should be seen as yet another stage in your career, and failures should be seen as an opportunity to analyse and change your business strategies.
One of the secrets to successful investing is the ability to not get carried away, to not go for the first tempting offer that comes along, but to analyse it and see it through to the end. Marina Groenberg says: “It is impossible to invest in everything ? what matters is focus, interest in the subject and inner certainty that everything will work out. I never envy or regret, but wish all intelligent, talented and motivated people good luck and victory.”
