3 Things To Consider Before Investing Into People

Investing in people is one of the most important things you can do as an investor. It's also one of the most difficult. While it's easy to invest in someone who has a solid track record and a good reputation, it's much harder to invest in someone who may not have a proven track record yet but has potential.

In this context, investment doesn't mean only investing money but also investing time (e.g helping out an individual with your expertise). Keep that it mind while we venture into this article.

Let's first look at what investing in people actually mean.

Investing Into People

Like all [investments]( https://leofinance.io/@leoglossary/leoglossary-investment), investing into people can be a [risk](https://leofinance.io/@leoglossary/leoglossary-risk), but the rewards are immeasurable because the [ROI]( https://leofinance.io/@leoglossary/leoglossary-roi) can't be quantified. Same with the [loss]( https://leofinance.io/@leoglossary/leoglossary-loss) especially from a time aspect.

Basically, investing into people is putting your effort, time and/or money into an individual to help him/her achieve his/her goals, dreams, ambitions while expecting a return in the future.

We all have different options for investing our time and money, but if it’s possible for you to invest them into people instead of things, I highly recommend doing so.

1. Nature Of Character

This is an obvious one, character is the foundation of every individual. It's not the book cover but through the book cover you can get a glimpse of what the book is about.

In the digital age, most people don't consider this step much enough because it requires a little bit of effort. Some even argue that it is unnecessary altogether because what matters most is in delivering results.

I personally disagree with that argument because a genius with a poor character will not achieve anything substantial. I think a good example is Sam Bankman Fried and the FTX saga. I'm not sure if he's a genius but his character was definitely off right from the start.

The first thing you should consider when investing in people is the nature of their character. This means asking yourself:

Who is this person?

Have they been around for a while and have they proved themselves to be reliable?

How does their character align with your values?

How does their character align with your goals?

How does their character align with your business?

This will definitely require some deep thought and research but it will save you from unnecessary headaches down the road.

2. Their Track Record

I've been an ardent fan of [Elon Musk]( https://leofinance.io/@leoglossary/leoglossary-elon-musk) ever since I read his biography. This guy has an impressive track record that's nearly unmatched in modern times.

Before investing into someone, it’s crucial to pay attention to their past results, looking at their track record and see what kind of success (or failure) they have achieved in the past.

In this step, these can be the questions you can ask yourself:

What are their credentials?

How do they perform under pressure?

How do they respond to failure?

What is their attitude towards learning new things?

All of these(and more) can be found in their track record. If it's good then you can invest in them.

If they don't have any track record yet then it's an opportunity to throw them the ball and see how good of a shot they take. That's what Nike did with Michael Jordan and it did turn out pretty well for them.

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3. The Supporting Cast

Another important thing to look at when considering whether or not to invest in someone is to look at their supporting cast. The people who surround the person you are investing in can be an excellent indicator of their character. Take for example Warren Buffett and Benjamin Graham.

Just looking at the supporting cast/team/community behind an individual or project (e.g Hive) could reveal a lot of valuable information that will convince (or not) in investing into them.

Some supporting casts are like a titan's shadow, assuring you that they're building a titan. Others are like an ant's shadow that could be wiped out in the next happenstance.

Conclusion

Investing in people is a big deal, so you have to be careful who you trust with your money and give your time to.

If you are considering investing in someone, then make sure that you consider the nature of their character, their track record and the supporting cast around them.

Thanks For Reading!

Profile: [Young Kedar](https://leofinance.io/@young-kedar)

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