Some of the most successful investors of all-time were lucky enough to be in the right place at the right time. They simply recognized opportunities and used them for their own financial benefit. However, a lot of people put too much emphasis on mere luck and don’t realize that investors like John Bogle or George Soros had many incredible personal qualities as well.
These qualities include both their natural talents and the skills they gained throughout their careers. In this article, we will show you 6 important traits of the world’s most successful investors.
Qualities Common to the Best Investors
The world’s best investors are special in many ways and it’s difficult to count all of their skills and abilities. They are also not all the same and each oneof these individuals has his own peculiarities. However, there are a few traits common to all of these finance experts and we will explain them here one-by-one:
1. They are lifelong learners
Great investors are lifelong learners. They know that information plays a key role in business and don’t want to fall behind their rivals. According to some sources, Warren Buffett used to read up to 1,000 pages a day when he was beginning his investing career. The knowledge they possess is their greatest strength.
Past success doesn’t count in investing, so they have to stay up-to-date and learn everything they can about their industries. But this passion for knowledge is not strictly professional – they also tend to learn a lot about the world in general, politics, and history. Everything they know helps them to make smart decisions when it matters the most.
2. They are pessimistic optimists
This trait sounds like a paradox but it’s actually true – the most successful investors are both pessimists and optimists at the same time. Namely, they always hope for the best but expect the worst. That way, they are prepared for good and bad situations in business and they know how to react in each one of these cases.
Less skillful investors usually expect only one rational scenario to happen, not understanding the misleading nature of the business reality. But their more cautious colleagues are always going two steps ahead and don’t get surprised or disturbed by stock exchange turbulences. Everything is possible, which is why they analyze business like pessimistic optimists.
3. They are calm and persistent
You will rarely ever see Bill Gross or Carl Icahn angry and furious. That’s just not the way outstanding investors behave. On the contrary, they are calm and persistent. They know that sometimes everything a man can do is to wait and see what is going to happen in the days to come.
Warren Buffett once noted: “Someone is sitting in the shade today because someone planted a tree a long time ago.” This is the best way to describe endurance and fortitude of such great business people. An average investor always feels like doing something or changing things. But the best investors know that fortune comes to those who are not afraid to wait for it.
4. They learn from mistakes
The fact that these investors managed to earn billions of dollars doesn’t mean that they are 100% right on all occasions. Nobody is perfect and neither are Warren Buffett and company. But what separates outstanding investors from their less accomplished counterparts is that they learn from mistakes and never repeat them again.
Now, you might say here that everybody learns from their own mistakes but this is exactly where these guys gain advantage – they are also ready to monitor other investors’ moves and learn from the mistakes their rivals and people in the past have made. Doing so, the world’s most successful investors learn how to get out of the difficult situations. John D. Rockefeller explained it precisely: “I always tried to turn every disaster into an opportunity.”
5. They are tireless networkers
You’ve probably heard that powerful people have powerful enemies. While this phrase really is true, it is also important to notice that the best investors have many friends as well. This way, investors are able to gather information, understand new trends in business, and react quickly.
They never stop expanding the network of professional acquaintances because it helps them to preserve their financial empires. They are never so lazy to avoid an event or skip the planned round table meeting. They are active 24/7 and nothing can stop them from growing their influence in their industries.
6. They have reliable advisors
Try to imagine how it feels to hold a multi-billion corporation in your hands. It must be a sensational feeling but it also has to be a huge burden for one man alone. That’s why the most proficient investors always gather a team of reliable advisors to follow them on every step.
Advisors help investors to deal with legal issues, give them financial suggestions, and conduct all sorts of business analysis for their partners. Without such support team, it would be impossible to handle all projects on your own. The most exceptional investors are still modest enough to admit they can’t do everything alone, so they surround themselves with reliable advisors.
Being a highly successful investor doesn’t simply mean being lucky and super-intuitive businesswise. On the contrary, the best investors possess a full set of qualities that make them stand out from the rest of their competitors. In this article, we revealed 6 important traits of the world’s wealthiest investors. Keep these traits in mind and try to develop them if you want to join the company of elite capitalists!
About the author:
Micheal Gilmore is an entrepreneur and passionate career advisor at online resume service ResumesPlanet.com. His mission is helping people achieve perfection in anything they do – and his life is fully dedicated to the people. You can catch Micheal on Twitter.
Article by Micheal Gilmore, Vintage Value Investing