You see them in every industry and field of activity. They are rich, charismatic and successful. They seem to have it all figured out. They have a knack for making money and investing money in valuable and profitable ideas and somehow they seem to always make the right decisions.
But what sets apart great investors from the average or less gifted ones? What makes a successful investor? What are his main traits? This article will give you the main characteristics of a successful investor.
Great investors have a thirst for knowledge. They always love to learn and expand their knowledge. They are proactive and engaged. They love to read and keep in touch with the latest trends and news and they are open minded, because they know better than anyone that information is power.
They always have a plan B for any investment they make. Great investors know that they can’t always rely on a single plan so they always prepare ahead and have a plan B, which is usually a way out. So before they even invest in something, they first prepare their ‘just in case’ exit strategy, so that they know they’re always backed up.
They don’t like risk. You might find this hard to believe, because you’d be inclined to think that you have to be brave enough to take risks in this life, if you want to succeed in anything. However, great investors know better and they won’t agree with you. They know that if they are well prepared and think through all the possible scenarios of an investment, there’s basically no risk involved because they always know what to expect and what’s the worst that can happen. And even more than that, they know how to handle it.
They are very patient. This might be one of the most important traits of any successful investor. They know that patience is a virtue and Rome wasn’t built in a day. They are aware of the fact that all great things take time and patience and you can’t build an empire overnight. They are well trained to keep calm and wait. They don’t get carried away by purchase and sell trends, they don’t despair during downtimes and they stick to their plan even if they know it takes years to come to fruition.
They have great skills of assessing and calculating the value of a certain investment or asset. Regardless of the nature of the business or asset, they are able to calculate its value and only sink their teeth into the worthwhile opportunities, while rejecting the other 90% if necessary.
They are in total control of their emotions, especially fear and greed, which are the primary emotions involved in making business related decisions. They know how to keep those emotions in control and use their logic instead. They will also remain neutral regardless of the outcome of an action, they’ll avoid displaying disappointment and vulnerability whenever things don’t go their way or cockiness and overconfidence each time they get a desired result.
They are highly disciplined. No matter of their preferences and ways of doing things, all successful investors have one thing in common: discipline. They know their priorities, they always stay focused and rarely deviate from their plan.