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Business News/ Money / Personal Finance/  Barbara Corcoran's 7 game-changing investing principles
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Barbara Corcoran's 7 game-changing investing principles

Barbara Corcoran is not just a prominent figure in the US investing landscape; she's a formidable force whose influence goes beyond mere recognition. She embodies the perfect blend of passion, intelligence, and the drive to succeed in a world that often overlooks those without success to their name.

When a lifetime of experience of real estate investing transcends to earning money from other investments too. Premium
When a lifetime of experience of real estate investing transcends to earning money from other investments too.

Barbara Corcoran, a versatile American businesswoman, has gained renown for her accomplishments in real estate and her engaging presence on the television show Shark Tank. Her noteworthy achievements and areas of expertise have become a focal point of study in numerous management schools. 

As aspiring entrepreneurs and finance professionals seek to understand her investing style and unravel the secrets of her business acumen that led to her success, she remains a subject of keen interest and analysis. She ascended from a humble working-class background to achieve a current net worth of $100 million.

Corcoran advocates for key investing principles centred around calculated risks and strategic planning:

Focus on investments in real estate

Barbara’s standout achievement is establishing The Corcoran Group, a leading real estate brokerage in New York City. Her astute strategies and adept negotiation skills played a pivotal role in the company's expansion. Her emphasis on property investments propelled her to the ranks of real estate moguls in the United States.

Emphasize growth through leverage: Corcoran stresses the importance of using leverage, which involves strategic borrowing, to acquire properties. Her strategy involves purchasing properties within budget and utilizing rental income to cover the mortgage, thus enabling profits to be reinvested.

House hacking: Corcoran suggests a strategy called house hacking, where you reside in a multi-unit property while leasing out the remaining units. This method helps mitigate your housing expenses and may even generate additional income.

Emerging areas: Corcoran recommends focusing on properties in developing neighbourhoods with growth potential. This strategy enables you to capitalize on increasing property values over time.

Also Read: Learn from David E Shaw: 6 principles for successful investing

Diversify investments beyond real estate

Corcoran’s inspiring journey from humble beginnings to success highlights her unique investment approach, which is evident in her real estate investments and other market ventures. Unlike many investors who focus on basic strategies like budgeting or debt reduction, Corcoran emphasizes the value of taking calculated risks, even if they may seem unconventional to others. She stresses the importance of being well-informed before entering or avoiding a venture for valid reasons.

Don’t be afraid of failure: Resilience, the capacity to recover from failure, is a vital skill for achieving success. Viewing failures as learning opportunities is key. Reflect on what went awry and apply that insight to enhance future endeavours. Fear of failure can hinder innovation. Embracing setbacks as integral to growth encourages trying new ideas and uncovering improved solutions.

Understand your strengths: Recognizing the significance of self-awareness, confidence, and perseverance is crucial for success. Knowing your strengths enables you to concentrate on areas where you can excel and bring the most value. Delegating tasks that are not within your strengths liberates your time and energy to focus on your strengths.

Gut instincts and data: Although numbers play a crucial role, Corcoran also emphasizes the significance of intuition and comprehending an entrepreneur’s passion and vision when evaluating investments. Most importantly, don’t sit back and wait for opportunities to find you. Advocate for your skills and achievements, and actively pursue opportunities that match your strengths. There will always be doubters questioning your abilities. Trust in yourself and your skills, and don’t allow negativity to hinder your progress. Don’t allow others’ perceptions to limit your potential. Concentrate on your goals and what you can accomplish.

Collaborative teams: Corcoran seeks ventures with teams possessing varied skill sets and personalities. This diversity fosters a dynamic environment conducive to idea generation and growth. Also, she advises the need to be selective with your team. Surround yourself with individuals whose skills and personalities complement your own.

Barbara emphasizes the importance of enjoyment amid the hustle and bustle of investment strategies. She’s not suggesting neglecting your emergency fund (keep nurturing that). Instead, Barbara encourages setting aside discretionary income solely for enjoyment. Regardless of your budget’s size, allocate a portion regularly to indulge in something that makes you feel fantastic.

Corcoran’s path to success wasn’t a quick journey spanning just a year or two. Her strategy might not suit everyone, especially those who prefer lower risk or have limited experience. It’s crucial to conduct extensive research and due diligence before making any investment choices. If you’re new to investing, consider seeking advice from a financial advisor who can provide personalized guidance tailored to your unique financial objectives and risk tolerance.

 

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Published: 12 Apr 2024, 01:15 PM IST
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