Metis AM
The Mission: Impossible series returns to cinemas with its seventh film this year, with Tom Cruise once again reprising the role of the main character, Ethan Hunt. What’s more, box office figures from the most recent instalment Mission: Impossible – Fallout suggest that the films are now more popular than ever before.
It’s certainly an impressive feat that almost 30 years after the first film was released, movie-goers continue to flock to cinemas to watch the latest instalment. Few franchises manage this level of success over such a sustained period of time. So, what could the film series teach you about long-term success when it comes to investing?
Read on to discover three tactics that Mission: Impossible uses to keep its fans hooked, and how they could help you to grow your wealth.
1. Trust the methods that have led to success
You can’t think of Mission: Impossible without thinking of Tom Cruise. The lead actor co-produces all of the films and has become a very safe bet for the production company and for the fans.
While it may have been tempting to consider introducing exciting new faces to the lead role, Cruise has become central to the success of the films. As well as being reliable, the actor is also enthusiastic about tackling the risky stunts that have become a central motif of the films.
Similarly, investing for the long term means trusting the portfolio that you’ve crafted with your planner. This portfolio has been carefully balanced to take the right level of risk for you, as well as offering the potential to achieve your long-term goals.
It may not be exciting, but persevering with trusted methods will usually give you more opportunities to achieve your long-term financial goals than chopping and changing your strategy.
2. Stay consistent
Since 1996, there has been a new Mission: Impossible film released roughly every five years, making them a regular occurrence in cinemas.
This regular schedule means fans must wait long enough to get excited about a new instalment, without waiting so long that they’ve lost interest. Consistent new films, coupled with consistent quality, has led to a loyal following and reliable success over the long term.
Consistency is also an important part of investing. Making investments on a regular basis is one of the ways that you can help your portfolio to grow sustainably. It can help you to avoid the “analysis paralysis” that can result from wondering whether now is the right time to invest, because you have committed to depositing a certain amount of money each month, no matter what.
There is another benefit to consistent investing, known as “pound cost averaging”. This refers to the strategy of regularly buying a small number of fund units or stocks and shares, helping to minimise the negative effects that fluctuations in the value of your shares could have on your overall wealth. Ultimately, the goal here is to generate the market average return on your money.
For example, say you have £500 to invest and the shares you wish to buy cost £10 each in June. You could invest the whole sum at once and purchase 50 shares.
Alternatively, you could invest £100 a month for five months. Assuming the shares rise and fall in value, as can happen on the stock market, then:
- In June, you could buy 10 shares for £10 each
- In July, the shares rise to £11 each, so you buy 9.09 units
- In August, the shares fall to £9 each, so you buy 11.1 units
- In September, they fall again to £8, so you can buy 12.5 units
- In October, they fall to £7 and you buy 14.3 units.
In the second scenario, you have been able to buy 57 units in total over the five months.
Let’s say the value of the shares rises in November to £15. In the first scenario, your shares will now be worth a total of £750, a profit of £250 on your original investment. But in the second scenario, your shares will be worth a total of £855, giving you a profit of £355.
The opposite can also happen. Let’s say in December, the shares fall to £9 each. In the first scenario, your shares would be worth £450, a loss of £50, but in the second scenario, they’d be worth £513, so despite the drop, you’re still £13 in profit.
This example shows how it can be beneficial to invest in your portfolio consistently and on a regular basis.
3. Focus on your end goal
The Mission: Impossible film series is so watchable because each one can be enjoyed with little or no prior knowledge of the other films. In each one, Ethan Hunt is focused only on the mission presented to him at the start of the film. Often, he has to work around the plans of other characters who are attempting to sabotage his efforts to complete his mission.
If you follow this guidance with your investments, you’ll give your portfolio a much greater opportunity to grow and achieve your goals. Along the way, you might be distracted from your own personal goals in pursuit of a stock that promises higher returns, or perhaps an investment that has helped a friend or colleague to succeed.
In reality, the only mission that really matters is your own. Whether it’s an early retirement, providing for your family, or moving abroad, keeping your focus on this goal and making investment decisions that are likely to take you closer to it means you have a better chance of completing your mission.
Get in touch
If you’d like to learn more about how you can achieve your own financial mission, we can help. Email enquiries@metiswealth.co.uk or call 0345 450 5670 today to find out what we can do for you.
Please note
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
