What does a successful investor need most? Buffett says: “You don’t need to have a high IQ, you don’t need to play three chess games at the same time, or you can play two decks of bridges at the same time, you need a proper personality, whether you live in groups or alone, you can be at ease”.
For the financial industry, a good personality is far more important than IQ. A person’s personality is 30% inherently destined, and 70% can be learned and improved through hard work. Personality determines investment performance. Successful investors who have achieved great investment performance, are not smarter than others, they do have a better personality than others. Buffett believes that investment is not complicated. “You don’t need to understand beta, efficient market theory, modern portfolio theory, option pricing theory, and market formation theory. In fact, it is better to know nothing about them. Through learning, you can understand how to treat stock prices rationally, how to overcome the demon and overcome yourself. Among them, continuous learning and patient operation are two essential qualities for successful investors.
Keep learning and think hard
Investment is absolutely inseparable from learning, regardless of you’re profitable or defective, you can always gain experience. As people say: “There are certain rules to follow in the investment market, but they are also unpredictable.” Investors can judge the point in time to buy or sell based on their experience.
At the same time, there are various uncertainties in the market. For any piece of market information, we have to think and analyze. One of the things in Warren Buffett’s strategy is very significant: think, think, and think again. Never forget to carry out a thorough and comprehensive analysis and research of the stock market or selected stocks, especially the analysis of the intrinsic value of the enterprise.
Therefore, it is possible to succeed in investing only if you are willing to continuously learn your expertise and generalize from various successes and failures.
Investment opportunities generally appear in the mid-term adjustment, and even in the long-term market, rather than in short-term fluctuations. Mostly, investors are waiting for the best investment opportunities and watching a large number of stock fluctuations every day. Like a spider, waiting for the insects 365 days a year. Once the time is right, take action without hesitation. When there is no ideal time, investors must learn to wait patiently and restrain their emotions. That’s why we say patience is one of the most important elements of success.
Many investors will be affected by emotions when investing. They will become irritable when the loss happens. To return the costs quickly, they increase the investments rashly so that they may continue to lose money. A successful investor will not “rise in blood pressure” due to fluctuations in market conditions, will not be frustrated and lost because of a failure, and will not be proud and complacent for success. At any time, they will control their emotions and pursue long-term investment benefits. In order to wait for Disney’s investment opportunities, Buffett spends 30 years; in order to wait for silver investment opportunities, it is 30 years again.
With these qualities, you can walk in the right way, realize long-term wealth appreciation and preservation, and continuously improve the quality of life.