“The rich don’t work for money.” Robert Kiyosaki
Warren Buffett never worked for money, he simply love the game. He’s passionate about good businesses and he loves allocating capital into great investments. His passion for business started early and bought his first stock at a young age.
“Great investing requires a lot of delayed gratification.” Charlie Munger
Great investors practice patience in so many ways; having patience to wait for a good investment when markets are euphoric; having patience to wait for the markets to realize the true value of a stock; having patience in conducting detailed analysis on a business.
“What an investor needs is the ability to correctly evaluate selected businesses. Note that word ‘selected’: You don’t have to be an expert on every company, or even many. You only have to be able to evaluate companies within your circle of competence. The size of that circle is not very important; knowing its boundaries, however, is vital.” Warren Buffett
A successful investor knows his strength and weakness, he simply focus on his strengths and understand its boundaries. If he is an expert in turnaround situations, then he will simply stick with that and not deviate into others.
“He owns many more stocks than I do — and is far less interested in the underlying nature of the business; I don’t seem to have very much influence on Walter. That’s one of his strengths; no one has much influence on him.” Warren Buffett on Walter Schloss
Key to success is having self-confidence. An investor needs to have full faith in his own analysis and investing philosophies. Sticking to your methodologies when times are tough takes a lot of self belief.
Being a Contrarian
“We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.” Warren Buffett
Successful investors know that the markets are driven by emotions, greed and fear. If you are able to understand what drives these emotions and avoid being a part of it, you are in a position to take advantage when the tide turns.
“I think the guys who are really controlling their emotions … are going to win.” Tiger Woods
There are times when speculating can be very tempting, and there are times we crave for some adrenaline pumping action speculating on stocks. This is where discipline separates the successful and the wannabes. Having discipline to stick to your investing principles and investing framework will ensure long-term consistency and success.