Characteristics of a great investor
We have all in our lifetime come across or read something about individuals who have amassed an abundance of wealth through investing, whether be it in financial markets, property, or even the bond market. Investors such as Warren Buffet, George Soros and recently Sean “Jay-Z” Carter. With seeing such great achievements one must conclude that investing is an important activity to learn and practice throughout your lifetime.
Great investing requires an individual to apply smart and effective principles which will allow for an individual to firstly create and grow wealth, plan for succession, reach their financial goals, and ultimately amass all the assets which were once a dream. However in order to be a great investor there are some traits you need to display, and the great thing about it is that these are traits any individual can learn.
Constant focus on your main goal or objective
When building an investment portfolio, it is important to establish an investment objective or goal, but equally importantly is maintaining and consistently keeping focus on that goal. By developing a plan you take the initial steps of keeping yourself accountable and disciplined to achieving it, and maintaining your focus throughout your plan will ensure that you achieve the desired financial goal.
It is always worth remembering that any great investor did not create and grow their wealth overnight, the position they took in investing was initiating an investment strategy that is long-term based, and having the patience to see it out. Many investors make losses by acting on their emotions (greed and fear) and by speculating market events. Patience is vital, as it is responsible to your eventual results.
Having a constant thirst for knowledge
Knowledge is power, this is evident in the world of investing, therefore constantly staying abreast with developments in the market, and performing due diligence before making an investment decision it is the best way to reap the best rewards when investing. This will allow you take advantage of market opportunities that will bolster your investment portfolio.
Financial markets are mainly built on investor sentiment, and navigating through this can prove to be very tricky, in South Africa we have experienced a market that has been extremely volatile and produced flat returns stifling investment growth. During such times it is vital that as an investor you remain calm and have the discipline to do so, even during rough waters. How you can remain calm is by ensuring that you remain steadfast in the investment strategy you have chosen, and ensure that the strategy follows smart and effective principles of investing.
There are plenty more characteristics a successful and great investor should have however, at SimWealth we believe by learning and maintaining the above characteristics any investor can realise their financial objectives and goals, while ensuring that you protect your hard earned money. With these characteristics you will able to create, grow and preserve the wealth you seek.