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Are you looking for ways to get started in investing? Or are you an experienced investor who simply can’t figure out where you went wrong in your last investment? We’ve got you covered. It’s true that rules for investment are no Da Vinci Code. However, investment is a tricky business especially if you are new to the game.
The solution: look at the game of the big players, the world’s biggest and most successful investors. Here you will find the key life lessons for investors. And by developing these traits yourself, you will surely be on your way to becoming one of them!
So here’s a quick overview of the 6 fundamental traits all great investors have.
1. They are laser-focused
Focus is key. But why exactly is it number one on our list? Because focusing on one thing at a time will determine your success. This is true not only for investment but also for any other field you plan to excel in in life.
It is tempting to want to juggle with a number of things at a time. But based on the analysis of successful investors and their techniques, clear-cut niche and well-defined goals are the most common observation.
This advice has been given multiple times by the multi-billionaire investor himself, Warren Buffett. In his own words, “You don’t need 20 right decisions to get you very rich. 4 or 5 good decisions would probably do over time”.
2. They are patient
“All good things come to those who wait.”
This is an age-old saying, and it is definitely true when it comes to investment. Ask any wise investor, and they’ll tell you that a little extra wait can make a difference between success and failure. The stock market goes up and down over time, meaning you can’t look for results in the long term. The same is true when investing in real estate, as property prices will almost always go up, but very rarely overnight.
Overwhelmingly, the results and pay offs from your investment will come over the years or decades rather than weeks and months. This is why patience is a key difference between an average investor and a master investor.
3. They play by the rules
Each investor has their own area of speciality. For some its tech, for another its stocks. The bottom line – investment principles have remained the same throughout generations. And the great investors know that. That is why they play by the rules.
They are successful because they have spent a major portion of their lives creating the plans that are based on these rules of success and investment principles. Sure, you have to take risks once in a while. However, the laws that governed financial success years ago are the same laws that govern it today. So, always base your plans on investment principles.
4. They have high risk tolerance
Investment involves taking big risks. Successful investors do just that. They act early when they see opportunities, and they never let them pass them by. This means that they put a lot on the line early on. Why? Because often the very best investments happen in things when no one wants them.
The world is full of such examples: Airbnb, YouTube, you name it. So many ideas that have taken over the world were once considered ridiculous by many investors at that time.
So what differentiated those who did not avail the opportunity versus those who did (and are now worth millions of dollars more)? The ability and foresight to see opportunities that others can’t see. Also, they have the courage to take risks.
5. They are persistent
Successful investors are disciplined. They do take risks, they are on the look-out for all the latest opportunities. But they have already built the ground work to base their strategies and practices on. That is the surest way they ensure their long-term and lasting success in the business. Their schedule, habits and lifestyle revolve around the framework they have built for themselves to achieve their success. You see this reflected when you look at the strategies and habits of the world’s wealthiest and most successful investors.
6. They are lifelong learners
Investment is mostly about money and the keyword here is ‘’mostly”. Money is not the full picture. Money isn’t the only end result in the whole experience of investment. It is a crucial process which allows you to learn so much more about life, such as problem-solving, failures, key tricks and resilience. In a nutshell, investment is a cycle of learning and improvement. The world’s mega-successful investors and entrepreneurs are avid readers. They realize that despite their huge success, there’s always something more that can be learnt and room for improvement that can be filled with bigger and better possibilities. So there you have it, the core traits of master investors who have been in the business long enough to see great failures and even bigger and lasting successes. Let’s learn from the big fish as they’ve already traded through the waters and lived to tell their successful tale (and their golden success habits).
Warren Buffett. Brian Moynihan Speak, Georgetown University: https://www.youtube.com/watch?v=PpzjiD-WaWI