Sunday, 12 April 2020

10 Habits of Top Investors

Investors outperform the majority by rising above the fear, greed, and impatience that the majority of investors can’t overcome.

Here are the ten common traits shared by some of the world’s greatest investors that made the most money by holding stocks.



1. The top investors think for themselves and do not look to others for tips and stock picks. The best investors use math to find their investments.

2. The best investors buy stocks that gives them the most value for their money. Investors are buying based on the future potential of earnings and growth of a stock versus the current price.

3. The best investors buy stocks with a long-term timeframe. They look out at what the potential price may be in 10 to 20 years and worry less about the next 10 to 20 days.

4. The best investors are always learning about new things, trends, and technology. Warren Buffett reads for hours a day, every day of his life.

5. Investors do not panic sell out of their investment holdings do to short term noise. They sell when the story of their company changes.

6. They buy the right company, at the right price, and at the right time and then sit tight and let it play out. The money is made in their sitting not constant activity.

7. Their opinions are based on cash flow, growth, earnings, sales, and revenue not their own personal opinions.

8. Warren Buffett, Bill Gates, and Mark Zuckerberg to name a few made the majority of their wealth by holding the bulk of their net worth in their own company’s stock. Many employees of the best company’s also made the bulk of their net worth by investing in their own company stock through their 401K or company stock option grants.

9. Great investors have a full confidence in their own method whether it is growth or value investing they have a process they follow for their buys and eventual sells.

10. They go into an investment looking for the best risk/reward ratio they can find and to buy the most growing sales and earnings for the lowest price. They intend to hold their best stocks forever.
Source: www.newtraderu.com

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