As a venture investor, I’m not too concerned with panic in the markets. I build positions at very low costs relative not just to potential upside but, more importantly, relative to current value. Now, valuing venture companies is both fundamental and judgmental – And getting both right results in a great investment. Getting either one wrong, and it can be a real disaster.

I’ve blogged in the past about my process – determining Merit and Leverage. And then applying the acquisition parameters of time and price. I’d like to elaborate on timing.

There is timing in the whole life of the warrior, in his thriving and declining, in his harmony and discord. Similarly, there is timing in the Way of the merchant, in the rise and fall of capital. All things entail rising and falling timing. You must be able to discern this ~ Miyamoto Musashi

Simply put, the timing of your investment – ie the time and price at which you enter the venture, will be a major determinant of your gain or loss, irrespective of the quality of the investment. Pretty obvious, huh?

Another way of saying it is as follows: A lower quality investment bought at the right time may outperform a higher quality investment bought a ‘less than right’ time.

Or how about this ~ two investors in the same investment, with identical opinions, can have dramatically different returns based on the time(s) they made their investment. Great investment, different results.

I’m blathering about this because markets are imploding, and I am hearing the familiar refrain of ‘ I’m a long term investor’ and ‘It’ll bounce back’. Well I have news for you. It is great to be a long term investor and yes, good investments have a better chance to bounce back than bad ones. But timing matters. Investments bought at the right time (and price) make the journey far more tolerable and successful.

Every investor hears – maybe thousands of times – it is time ‘in the market’ that matters, not ‘timing the market’. ie. the best time to invest is now! Don’t wait!

Well, do you think Warren Buffet looks at his pile of cash and says ‘buy now, don’t worry about price’? Does any serious money manager not make time and the price they pay a prime consideration? I know the ones that do – they are called the good ones.

The financial industry is built upon separating you from your money and charging you a fee. It is in their interest to get that money invested, irrespective of the timing.

Be careful. Timing DOES matter and improving it – making good, intelligent decisions about when to deploy / extract your hard earned capital into volatile investments will lower your risk and improve your return.

GLTA!