In 1980, Warren Buffett made a 6-Point list of what it takes to be a great investor.
Here is what he wrote down 👇
Here is what he wrote down 👇
1. Controlled Greed
A great investor is animated by controlled greed.
Controlled greed is the desire to build wealth over the long term.
If you are too interested in money, you will kill yourself; if not interested enough, you won't go to the office.
A great investor is animated by controlled greed.
Controlled greed is the desire to build wealth over the long term.
If you are too interested in money, you will kill yourself; if not interested enough, you won't go to the office.
2. Patience
You can't be in a hurry.
If you want to get rich fast, the stock market is not the place for you.
The stock market is about participating in businesses, not selling securities.
You can't be in a hurry.
If you want to get rich fast, the stock market is not the place for you.
The stock market is about participating in businesses, not selling securities.
3. Be Unique
You must think and act independently.
If you think like everyone else, you will perform like everyone else.
In theory, everyone invests in downturns.
In practice, this often sounds like: "This company is done! No one wants to own it!"
You must think and act independently.
If you think like everyone else, you will perform like everyone else.
In theory, everyone invests in downturns.
In practice, this often sounds like: "This company is done! No one wants to own it!"
4. Self-Confidence Based on Knowledge
If you lack confidence, fear will drive you out at the bottom.
You have to be arrogant enough to think that you are right and they're wrong.
The crucial part is how you derive your opinion.
Make sure it's based on facts, not feelings.
If you lack confidence, fear will drive you out at the bottom.
You have to be arrogant enough to think that you are right and they're wrong.
The crucial part is how you derive your opinion.
Make sure it's based on facts, not feelings.
5. Accept your Weaknesses
You don't know everything.
You aren't good at everything.
Choose the battles you want to find wisely.
Stay in your circle of competence and structure your investment process to support your strengths.
You don't know everything.
You aren't good at everything.
Choose the battles you want to find wisely.
Stay in your circle of competence and structure your investment process to support your strengths.
6. Flexibility
Be flexible as to the types of businesses and industries you research.
But never be flexible about your philosophy and rules!
Be flexible as to the types of businesses and industries you research.
But never be flexible about your philosophy and rules!
There's a visual of this list on my Investing Resources page.
Together with 1000s of free PDFs:
danielmnke.com
Together with 1000s of free PDFs:
danielmnke.com
That's it for today!
If you enjoyed it, please Like and Retweet this Thread so more people can see it!
Follow me @MnkeDaniel to learn more about Investing.
Have a great day!
If you enjoyed it, please Like and Retweet this Thread so more people can see it!
Follow me @MnkeDaniel to learn more about Investing.
Have a great day!
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