12 Oct Winning Strategies For Successful Investors
The #1 thing I’ve learnt about Stocks & Options Financial Education
I’ve managed my own portfolio with 20% Return on Investment year on year since it started. And if there’s one thing I’ve learned, it is that KNOWLEDGE IS POWER. The power to make informed decisions and TAKING ACTION is the way to reduce risk, and be profitable.
I didn’t understand it and kept losing and trying to play catch up in the game of money. The process of learning about money started with reading, watching videos and the most important factor, finding the right coach.
Completing my degree and studying accounting and finance taught me the theory of money, however, it does not teach me how to invest.
Therefore, I started my investment journey by looking for the right financial education. Unfortunately, there are many trainers/coaches that don’t fully impart the knowledge of investing safely and profitably, because they want to upsell their program. I paid quite a big sum of money to these people, but i got back little to no value.
Therefore, even after I attend many programs, I still find my own mentors and coaches.
When it comes to knowledge, it is very important to learn from the right people, and below, these two very famous investors share their rules of investing.
Warren Buffett follows three general rules when deciding which companies to invest in:
First, they must earn good returns on the net tangible capital required in their operation. (aka. make profits)
Second, they must be run by able and honest managers.
Finally, they must be available at a sensible price
Joel Greenblatt is not looking for the cheapest company; not looking for the best return on capital; He is looking for those companies that have the best combinations of those two.
How to get the knowledge?
Read Up on Financial Topics
The library, your local bookstore, and multiple online retailers offer literally thousands of books on every conceivable financial topic.
Google and search for investing topics
Google and other search engines let you hone in on specific topics, and many mutual fund companies and financial services firms offer a wealth of free information.
Take a finance program
There are thousands of in-person and online courses available to help educate you about finance and investing.
Talk to Financial Services Professionals
Once you have a solid understanding of the various aspects of the financial services world, it is time to spend some time talking to the experts.
Subscribe to financial newsletters.
For free financial news in your inbox, try subscribing to financial newsletters from trusted sources.
Listen to financial podcasts.
Podcasts can be a great way to soak up financial news while you do housework, run errands or walk the dog.
However, do take note that, many times that we learnt from many others, without proper guidance, your learning journey will be longer and sometimes, painful.
Looking to understand more about stocks and options?
This list wouldn’t be complete without one of the most successful investors of our time. Warren Buffett is an inspiration to investors; he’s the second wealthiest person in the United states and fourth in the entire world.
Buffett made his first stock purchase when he was just 11 years old. Interestingly enough, he gained over 99 percent of his current wealth when he was over 50.
Some of his best tips on financial freedom include:
- Read, read, read. Buffett says he spends up to six hours a day reading books, magazines, and newspapers. He has read many books on investing, personal finance, and business. Some of his favorites include “The Intelligent Investor” by Benjamin Graham, and “Business Adventures: Twelve Classic Tales from the World of Wall Street” by John Brooks. He strongly encourages people to pick up books on investing.
- Complacency kills. Capitalism is competitive in nature. Many people get complacent after they get some results. Maintaining a consistent level of hunger, with whatever you do, is key to long-term success.
- You are your biggest asset. Where you choose to invest your energy will determine where you end up. Education is key to unlocking potential. Habits are key to executing on that potential.
Rounding things off
One of the most powerful lessons I’ve learned about success is how most of it is psychological. A strong investor mindset is priceless. Most people end up sabotaging their investment because they aren’t emotionally ready for the roller-coaster ride. Additionally, many people do not understand the whole game play, they tend to feel helpless and emotionally affected, as they are not trained to solve problems when the market goes again them.
The bad news is that there’s no secret sauce to success, but the good news is that you can achieve almost anything if you’re willing to the work smart, go for financial education and increase your success in investing.