We have come to the last three winning investment habits taken from the best-selling book “The Winning Investment Habits of Warren Buffett and George Soros” by Mark Tier.
These master investors are polar opposites in terms of investment style and temperament.
However, the author has shown that many similarities do exist between the two that can be gleaned for us to learn.
These good habits also apply to other successful investors around the world and you would do well to make them a part of your life, too.
Do catch the previous sections of this series – Part 1, Part 2, Part 3, Part 4 and Part 5.
21. Emotionally involved with and gains satisfaction from the investment process
The successful investor is motivated by the investment process and derives great satisfaction from it.
He or she is not fixated solely on the outcomes.
Put another way, the investor is driven to refine his or her investment process and philosophy.
By doing so, positive outcomes will naturally flow.
Successful investors gain satisfaction from the search and screening process.
Finding and identifying great companies is akin to hitting a bonanza that provides satisfaction and contentment.
Profits are, of course, a welcome aspect of investing, but it does not form the main driving force for doing what he or she does.
22. Lives and breathes investing 24 hours a day
Passion drives the successful investor, enabling him or her to live and breathe investing 24/7.
Some may argue that this borders on obsession, but it’s a fact that you can only get good at something if you constantly study and practice it.
Take a sport such as tennis or football, for instance.
Only through consistent training, application of the principles and practice can you master the sport and be good at it.
Investing is very much the same and requires discipline and commitment to be competent.
Passion itself cannot be taught.
It can, however, be slowly cultivated over time, such that investing forms a part of your life and becomes a part of how you manage your money.
23. Puts their money where their mouth is
Every great investor walks the talk.
This means putting your money where your mouth is.
The worst kind of investor is the type that quotes lines from famous investment gurus such as Warren Buffett but ends up being “all talk, no action”.
Worse, some may be preaching investing to the public but are secretly day-trading in private.
The litmus test is whether you will sink money into a philosophy you deeply believe in, as opposed to just skimming the surface.
Demonstrating conviction and confidence is the mark of a master investor, as this implies you have confidence not just in your stock picks, but also in your investment style and philosophy.
Get Smart: Putting it all together
This list of 23 winning investment habits should be used as a checklist and be periodically reviewed
It will provide you with a great psychological and mental framework for approaching investing.
While this list is not exhaustive, it is a good start for aspiring investors who wish to adopt the correct mindset when it comes to prudent and sustainable investing.
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Disclaimer: Royston Yang does not own any of the companies mentioned.
