What Does It Take To Be A Great Investor?

By: ispeculatornew
Date posted: 11.27.2012 (4:00 am) | Write a Comment  (1 Comment)

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Yesterday, I ended up reading an article that surprised me. A study of successful entrepreneurs came to the conclusion that a majority of such persons were married with children. As a newly turned dad, that was very surprising to me at first. You would not expect those that have the least amount of free time to end up being the most successful in business.. or would you? It’s easy to get caught up thinking about guys like Mark Zuckerberg and Bill Gates that built empires in their early years when they could basically dedicated their entire lives to their company.

What Does It Take To Be A Great Investor?

I guess the question might require a bit of thinking and there are many different good answers. I started thinking about it and came up with two dozen different answers!! Here are a few of my top ones, I’d love to hear about yours:

Having A System: Both in my general investing, in my tech stock long & short and my dividend investing, I do have fairly strict rules that change over time but do provide a great guideline. I’m convinced that is necessary. Any successful investor will be able to explain exactly how they invest. Sure, some to be guided by instincts but I think that most of the successful investors do have clear systems.

Discipline: Investing can be very challenging and any investor that is unable to follow his rules, close out losing trades when they no longer make sense will have a very difficult time succeeding.

Ability To Filter Through Information: A few years ago, guys like Warren Buffett would use financial statements to build an opinion on a stock. These days there are those statements, analyst analysis, news, rumors, information, earnings calls, social media, blogs, etc. It is truly a challenge to determine what information is most reliable and how to judge the value of different sources.

Mental Strength: Being disciplined is important but it’s also critical to be able to remain mentally strong and confident after a few bad trades, to remain confident in the system.

Do you have those abilities or others that you consider necessary to be a great investor?

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1 Comment

  1. Comment by Eko Santoso {FaceBook} — February 6, 2014 @ 8:23 am

    Dividend stocks can make you rich. It’s as simple as that. While they don’t garner the notoriety of high-flying growth stocks, they’re also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up faster than most investors imagine !

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