Do you ever wish to become a Great Investor? Or do you have any future plans to invest in a business in order to become a good investor? If so, then this article might be very useful for you.
Who is a great investor?
A great investor is the one who has got the special tactics, the abilities and qualities that other people do not possess.
A great investor is smart and clever who knows how to deal with his money.
He knows where to invest, how to invest and when to invest.
He is an educated person who makes use of his education in practical work and is many patients in the hard times.
There are some great investors who apply different existing strategies to their trading while the others discover some new innovative strategies and procedures to analyse their investments.
Probably every good investor you know around in this world have some common skills like:
– They have good consultation policies
– Bidding strategies
– Great market skills
– Good forecasting skills
All of these skills are indeed useful and beneficial for people who invests in their businesses but the surprising skills that I have gathered for you are the ones which are possessed by some best investors (super talented and hard working) of the world like Benjamin Graham, Peter Lynch, John Templeton, Warren buffet, George Soros, Julian Robertson, Bill Miller, Steven A. Cohen etc.
The 5 surprising skills:
Being able to communicate in the right manner is one of the best skills that every great investor has.
Communication is very important because being an investor you do not have much to share with people. Therefore, the only way you can interact with your customers is communication.
You must be able to receive your customer’s calls and check their emails on time. You must be available to reply them as soon as you can.
Communication clears the doubts laid by your customers. And also it increases the productivity rate of your business.
If you have an entire staff for your business, then you need to give them instructions on good communication. You aim should be to satisfy every customer.
When you become smooth in your communication, you won’t get puzzled when you speak.
2) Be numeric:
In almost all sorts of businesses, having an understanding of numbers is essential.
Being an investor you are required to make a financial statement analysis. And for that purpose, you must have a deep knowledge of numbers and accounting.
Accounting is the main language of a business and with the use of accounting in business; an investor can get an idea about how his business would be operating in the future and about its success rate as well.
3) Compare efficiently:
When it comes to comparing in business, people are quick but not as good in it.
The mostly comparable point in business by all investors is “expectations vs. fundamentals” and most of them fail to do so properly.
Investors also seem to be interested in comparing active versus passive, value versus growth, stock A versus stock B etc.
To be a successful investor, you must learn to understand each item separately and then try to compare it.
The purpose behind the process of comparison is to check the outcomes.
4) Make use of probability:
Along with accounting, great investors think probabilistically in order to produce better results.
If you make use of probability, you not only would be able to find the outcomes alone but consider their probability as well.
Probability helps in making good decisions and good decisions produce favourable outcomes for your business in the long haul. However, it is not necessary that good decisions always produce good results.
Therefore, probability plays an equal role in the outcome as accounting.
The types of probabilities used in business are of various types such as:
– Subjective probability
– And sluggish percentage
5) Read – to keep your mind open to challenges:
The best investors all around the world are successful because of the fact that they read. They have intensive knowledge of about every aspect of life. Be it psychology, medicine, arts, economics, business, law.
They have knowledge from every realm and they even apply certain applications to their business and thereby create new innovative business strategies and inspiring policies.
The secret behind their vast knowledge and capabilities is that they read and apply.
Every one of us loves the internet but to have knowledge about an investment you need to read books and not websites because nothing beats a good informative book.
Better investing doesn’t happen accidentally, you need to work on it in order to become a successful investor and make money.
To increase the flow of your money, you need to study, read and learn. And once you start learning, do not stop. Because you will be better at investing when you are fully committed to learning in the first place.