07/24/2017
1:56:35 PM
INVESTMENT TIPS: LEARNING FROM OTHERS’ MISTAKES
The best way to learn is through closely watching the steps and missteps of legendary investors from the past and present times.
One Stephen Weiss has written a powerful book titled A Billion Dollar Mistake which is a source of wisdom for investors and investors to be.
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As an investor it is important to master the art of negotiation. This is an important skill required by investors and investors-to-be.
Next, it is important to carry out due diligence at all times. This is crucial in attaining sound judgments in the world of investments.
Always remember to buy low and sell high. That is how investors make profits. Any other way you are destined to stagnate or make losses.
Cultivate passion in all that you do. With passion in the mix, investing can be an enjoyable and beneficial economic activity.
Absorb as much information as possible. Be like a sponge absorbing investment information and data. Learn all you can about the companies whose shares you are planning to buy and the monitor the market movements.
What do I mean? Be a student of the markets who loves the complexities encountered in the market place.
Invest your resources on investment guides and other forms of literature. Consume these with passion and aim at understanding the tips that they promote.
Bear in mind that investing on behalf of relatives and friends is risky and must be avoided by all means. Always remember the past because history repeats itself.
“Those who cannot remember the Past are doomed to repeat it” George Santayana, 1905
If you are starting out and you have no ideas how equity markets work, it will be important for you to seek for employment in equity firms (stock brokers, investment banks, mutual funds firms and even the stock exchange itself). If you get any job in such institutions, you will get a first-hand information and data and experience of interacting with the actors in the high finance sector.
When searching for firms to offer you investment advice, do not be fooled by actors who drive big cars, are in the company of beautiful women, live in prestigious suburbs and are known for their athletic prowess.
Investing vs Speculation
As an investor, it is important to differentiate between investing and speculation. A number of investors employ good public relations such as driving big cars and serving celebrity clients only. This is not a guarantee that they will make good judgement when it comes to investing.
Relationships and investing
It is important to disregard close relationships when investing. You are advised not to invest on behalf of relatives and friends. It is risky!
Do not be over expectant because even the best investment managers are only correct 60 per cent of the time. They manage large asset pools.
Always avoid mistakes when trading equities on the stock markets. To be a high-powered businessman, you have to learn the ropes of the business at hand.
Learn from other people’s mistakes
When you invest USD$1 billion and end up with USD$300 million is a great mistake. This is what Kirk Kerkorian did. He missed carrying out proper due diligence. This happened despite his over 50 years on the investment arena. He was a master negotiator but still he made missteps in his investment judgments.
READ more: Books recommended for investors
Read: Intelligent Investor
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