Top 5 Successful Investor Traits
Ever wonder how some people reach the highest point o their careers of field of work while other investors like Warren Buffet turn into billionaires? Why is everyone else consistently seeing the same “average” results?
Aside from all the incredible buying decisions or multiple accounts of sizable retirement funds through some financing company, investors also have phenomenal propensities that are profoundly instilled into their very DNA.
It’s not a mere coincidence that certain investors discover triumph while other never achieve their goals.
No, there are without a doubt attributes that set investors like Warren Buffet apart from the average investor.
Let’s walk in the shoes of a successful investor but first you have to start thinking and acting like one. Simply start understand their habits and applying them to your own approach.
These are five habits of extremely successful investors.
1. Extensive Research
There are an abundance of studies, observations, and analysis readily available everywhere, such as the television, internet and Wall Street Journal about investments. Before making any investment especially in a company, use the product(s) for yourself and study the business. The better understanding you have of the business the more confident you’ll feel about your investment.
Investors that are successful have a precise reason behind every stock ‘buying or selling’ decision and it’s not because they heard at T.V analyst pushing the stock as a buy.
In order to reach your investment goals, you have to take the same approach with your own portfolio.
2. Understand the Business
There are hundreds of thousands of organizations to invest in and a good amount of them might have the potential to be good investment option, but that doesn’t necessarily mean you should invest.
Why would you invest in a technology company if you don’t know anything about tech? Do you personally know how to evaluate the next mobile app or the technology trends that will impact the business investment? If not, don’t bother!
If you are detached from the business, their products and the industry they operate in it’s going to be harder for you to make smart investing decisions. Successful investors always-always invest in what they know and focus their investing efforts within their circle of competence. Warren Buffet doesn’t invest in technology stocks because that’s not what he knows.