Every aspiring investor, established investors and even regular folks have heard of Warren Buffet. Why is that? Warren Buffet is one of the most successful investors of all time and he has achieved all this with just two tools at his disposal! Patience and Dedication!
Many people will argue that he was born with better cards than them or that he came from a privileged household. Nevertheless his monumental success cannot be ignored!
I believe that everyone regardless of where they came from or how difficult the obstacles in their way are can become successful investors.
So how do you become a successful investor?
Becoming a successful investor is not only about researching and strategizing! Being goal-oriented is a fundamental part of it according to an m1.coms article called Better investing: How to make better investment choices.
Having an objective with your investing in mind is critical to be able to measure how much risk you’re willing to take on. Don’t ever adopt one of your friends, family or colleagues strategies to each his own. You need to do your own research, strategizing and planning. Start out with looking at business financial statements and specifically look at return on equity, dividend payouts and expected growth.
In order to set goals you need to analyse your own hopes and dreams to set good goals for yourself. Goals are important, because they are a way for you to measure your progress and hold yourself accountable.
For example if you have over 50 brokerage accounts you are making things exceptionally hard for yourself. David Rae wrote an article on forbes.com called 7 Ways To Become A Better Investor Today where he recommended that you should have all of your investments in one place.
Sure you may be required to have several brokerage accounts if you are using a 401K retirement plan or if you are utilising the original Roth Ira method. David recommends that you look for an independent brokerage firm where you have easy access to your shares and funds.
No one knows the answer to every question! You always have to acquire new knowledge to become better at the things you are doing. It doesn’t matter if you are one of the best investors in the world like Warren Buffet.
However, do not learn the same lesson twice! In an article called How to Become a Better Investor — 20 Ways to Improve you should have a journal or a paper at your disposal where you can write down what you have done, what worked better and what did not work as well. Make sure to look over this paper or journal so you don’t make the same mistake twice.
So how do you learn?
The best way to learn is by reading books and consuming knowledge on a regular basis. Some of the best things that I have learned during my investing journey I have learned by reading books.
Nevertheless you should not underestimate how good it is to learn from experience. Never be dependent on theory, because in theory everything is supposed to work a certain way, but life doesn’t work that way. Therefore it is critical that you apply the knowledge that you learn from reading the books about investing or else you will never learn.
Finally you have to keep an open mind in order to become a better investor. In life it is very easy to get trapped in your own bubble, unfortunately a few investors only consider their own worldview according to the same article as the previous paragraph.
Investors who don’t consider anything outside of their expertise, because their whole personality and identity is connected to that area. Imagine an older investor who is in their mid forties to their mid fifties completely avoiding investing in Bitcoin, because they aren’t familiar with crypto or because they are not willing to dedicate themselves to understand crypto. Be open to new investment opportunities that could make a lot of money. Times change and you should change with them!
To conclude this article you need to be patient, dedicated, goal oriented and open minded in order to unlock your inner Warren Buffet. Buffett’s success is because of his disciplined way of investing that anyone can copy. When you’re setting goals, making your investments simple, learning all the time and being open to new opportunities, you can become a better investor.
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