6 properties of real investors
6 properties of real investors
As long as everything goes well, an investor will not complain. As long as the graphs rise, everyone is the new Warren Buffett. It is only when the party is over that the real investors are entitled. Then the following 6 properties come up. And in the long run that makes a world of difference.
The biggest difference in return is not made when prices rise, but when prices fall. If you do not have the following 6 properties, chances are that the next correction can be fatal for your return.
The 'balls' to buy when everyone sells and sell when everyone buys
Ask 100 investors if they have the art to buy when others sell and sell when others buy and 95 will answer 'yes'. In theory everyone can do this, but in practice it often turns out to be the opposite.
Learn from mistakes
- Investors repeatedly make the same mistakes again. That is because they displace their mistakes from the past and go on again. Without learning from those mistakes, you can not do better next time and make those mistakes again.
You control the risks
- Risks are inherent in investing, but managing those risks is an essential part. When the risk exceeds the potential revenue, you better not invest. Investing only becomes interesting when the downside risk is limited and the upside potential is gigantic.
Persuasion
- You have to be convinced of your own research, even when others always criticize it. For example, Buffett never participated in the internet madness in the late 90s and received a lot of criticism. After investors lost almost all their money in these shares, Buffett was welcomed with applause as a convinced value investor.
Daring and being able to think differently
- Most people use only one part of their brain, the left that is good in mathematics. You also have to use the right part, the part that a management can assess or take a step back to view the bigger picture.
Invest as you are an investor
- Every investor has its own strategy and philosophy. That strategy / philosophy will not always work. There will be periods that the results will be somewhat less. Many investors then try something else. But the most important thing to succeed as an investor is to remain your own as an investor, even in lesser times. This ensures the greatest returns over the long term.
Source: ValueWalk