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23 Winning Investment Habits
As outlined by the book The Winning Investment Habits of Warren Buffett and George Soros.
The book is fantastic and well-worth a read.
Below I've masterfully paraphrased and split into wise vs. noob investors
[Thread]
![23 Winning Investment HabitsAs outlined by the book The Winning Investment Habits of Warren Buffett and George Soros.The book is fantastic and well-worth a read.Below I've masterfully paraphrased and split into wise vs. noob investors[Thread]](https://pbs.twimg.com/media/EbIoF6GXkAIoEgi.jpg "23 Winning Investment HabitsAs outlined by the book The Winning Investment Habits of Warren Buffett and George Soros.The book is fantastic and well-worth a read.Below I've masterfully paraphrased and split into wise vs. noob investors[Thread]")
As outlined by the book The Winning Investment Habits of Warren Buffett and George Soros.
The book is fantastic and well-worth a read.
Below I've masterfully paraphrased and split into wise vs. noob investors
[Thread]
1. Preservation of Capital is Always Priority Number One
Noob investors want to make a ton of money
Wise investors want to keep what they have
Noob investors want to make a ton of money
Wise investors want to keep what they have
2. Passionately Avoid Risk
Noob investors seek big risk because they don't know know that risk avoidance is the secret sauce of investing success
Wise investors minimize risk through their own set of deep analysis
Noob investors seek big risk because they don't know know that risk avoidance is the secret sauce of investing success
Wise investors minimize risk through their own set of deep analysis
3. Develop your own Unique Investment Philosophy
Noob investors have no strategy or blindly copy others' strategies
Wise investors structure their own investing philosophy based on their experience
Noob investors have no strategy or blindly copy others' strategies
Wise investors structure their own investing philosophy based on their experience
4. Develop your own, Personal System for Selecting, Buying, and Selling Investments
Noob investors invest ad hoc
Wise investors invest with their own criteria based on their philosophy
Noob investors invest ad hoc
Wise investors invest with their own criteria based on their philosophy
5. Buy as Much as You Can
Noob investors are either overconfident or under confident in position sizes
Wise investors invest with conviction because they have minimized risk
Noob investors are either overconfident or under confident in position sizes
Wise investors invest with conviction because they have minimized risk
6. Focus on After-tax Returns
Noob investors overlook the taxes, fees, and transaction costs that hamper long-term returns
Wise investors structure their strategy to minimize taxes
Noob investors overlook the taxes, fees, and transaction costs that hamper long-term returns
Wise investors structure their strategy to minimize taxes
7. Only Invest in What you Understand
Noob investors buy the hot tip without understanding the underlying investment
Wise investors buy what makes sense to them so they can trust their own analysis
Noob investors buy the hot tip without understanding the underlying investment
Wise investors buy what makes sense to them so they can trust their own analysis
8. Refuse to Make Investments That Do Not Meet Your Criteria
Noob investors justify exceptions to their minimal strategy leading to cognitive dissonance and underperformance
Wise investors see the missed opportunity as the cost of business
Noob investors justify exceptions to their minimal strategy leading to cognitive dissonance and underperformance
Wise investors see the missed opportunity as the cost of business
9. Do your Own Research
Noob investors love financial entertainers and Twitter gooroos
Wise investors ignore them and do their own homework
Noob investors love financial entertainers and Twitter gooroos
Wise investors ignore them and do their own homework
10. Have Infinite Patience
Noob investors succumb to the dopamine rush of the markets and try to make opportunities that do not exist
Wise investors realize that they have to wait for opportunities to come to them
Noob investors succumb to the dopamine rush of the markets and try to make opportunities that do not exist
Wise investors realize that they have to wait for opportunities to come to them
11. Act Instantly
Noob investors will "wait for the dip", but enter at a higher price.
Wise investors know that a valuable asset will increase over time and acts accordingly
Noob investors will "wait for the dip", but enter at a higher price.
Wise investors know that a valuable asset will increase over time and acts accordingly
12. Hold a Winning Investment Until There's a Predetermined Reason to Sell
Noob investors fear loss of the winning position
Wise investors fear missing out on the potential gains by selling the position
Noob investors fear loss of the winning position
Wise investors fear missing out on the potential gains by selling the position
13. Follow Your System Religiously
Noob investors, by lacking a system, have no edge
Wise investors know their edge is their system and follow it without question
Noob investors, by lacking a system, have no edge
Wise investors know their edge is their system and follow it without question
14. Admit your Mistakes and Correct them Immediately
Noob investors don't know when they've made a mistake
Wise investors conduct postmortem analyses to determine how to prevent a future mistake
Noob investors don't know when they've made a mistake
Wise investors conduct postmortem analyses to determine how to prevent a future mistake
15. Turn Mistakes into Learning Experiences
Noob investors don't know the market doles out education daily
Wise investors are constantly learning from the markets
Noob investors don't know the market doles out education daily
Wise investors are constantly learning from the markets
16. Pay Your Dues
Noob investors expect to make outsized returns from the start because they read a book or watched a course
Wise investors expect to lose upfront, but make it up on the backend
Noob investors expect to make outsized returns from the start because they read a book or watched a course
Wise investors expect to lose upfront, but make it up on the backend
17. Never Talk About What You're Doing
Noob investors love posting great results while hiding the bad
Wise investors don't care what others think about their results
Noob investors love posting great results while hiding the bad
Wise investors don't care what others think about their results
18. Know How to Delegate
Noob investors do everything themselves to "save money"
Wise investors know that paying up for good help, tools, or books are worth the money
Noob investors do everything themselves to "save money"
Wise investors know that paying up for good help, tools, or books are worth the money
19. Live Far Below Your Means
Noob investors trade to expand their means in the short term
Wise investors have minimized their lifestyle expense so they can patiently wait for opportunities
Noob investors trade to expand their means in the short term
Wise investors have minimized their lifestyle expense so they can patiently wait for opportunities
20. It's Not About the Money
Noob investors love the idea of green in their accounts
Wise investors know that the money just keeps score
Noob investors love the idea of green in their accounts
Wise investors know that the money just keeps score
21. Love What you Do, Not What you Own
Noob investors fall in love with their investments
Wise investors love the process of investing, not what they invest in
Noob investors fall in love with their investments
Wise investors love the process of investing, not what they invest in
22. Live and Breathe Investing 24 Hours a Day
Noob investors think they can be outstanding with just a couple minutes a day invested
Wise investors are always background processing on their investments, slowly piecing together a hypothesis.
Noob investors think they can be outstanding with just a couple minutes a day invested
Wise investors are always background processing on their investments, slowly piecing together a hypothesis.
23. Put Your Net Worth on the Line
Noob investors foolishly put their net worth on the line, risking too much given their naivete
Wise investors walk their talk and put their net worth in their investing vehicles.
Noob investors foolishly put their net worth on the line, risking too much given their naivete
Wise investors walk their talk and put their net worth in their investing vehicles.
I hope you've enjoyed the thread.
I put my own net worth on the line with $250k invested in my dividend strategy.
I've outlined it in my book.
Read it and take what works for you. http://gum.co/CSdwG
I put my own net worth on the line with $250k invested in my dividend strategy.
I've outlined it in my book.
Read it and take what works for you. http://gum.co/CSdwG
I've also created software to help dividend investors take it to the next level to help them identify and research stocks that fit their own criteria.
It's available below as a membership.
If you have any questions reach out to me or my affiliates. http://gum.co/mHSuK
It's available below as a membership.
If you have any questions reach out to me or my affiliates. http://gum.co/mHSuK
