6 Important Traits Of The World’s Most Successful Investors

6 Important Traits Of The World’s Most Successful Investors

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.

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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.

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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

Ben Graham, the father of value investing, wasn’t born in this century. Nor was he born in the last century. Benjamin Graham – born Benjamin Grossbaum – was born in London, England in 1894. He published the value investing bible Security Analysis in 1934, which was followed by the value investing New Testament The Intelligent Investor in 1949. Warren Buffett, the value investing messiah and Graham’s most famous and successful disciple, was born in 1930 and attended Graham’s classes at Columbia in 1950-51. And the not-so-prodigal son Charlie Munger even has Warren beat by six years – he was born in 1924. I’m not trying to give a history lesson here, but I find these dates very interesting. Value investing is an old strategy. It’s been around for a long time, long before the Capital Asset Pricing Model, long before the Black-Scholes Model, long before CLO’s, long before the founders of today’s hottest high-tech IPOs were even born. And yet people have very short term memories. Once a bull market gets some legs in it, the quest to get “the most money as quickly as possible” causes prices to get bid up. Human nature kicks in and dollar signs start appearing in people’s eyes. New methodologies are touted and fundamental principles are left in the rear view mirror. “Today is always the dawning of a new age. Things are different than they were yesterday. The world is changing and we must adapt.” Yes, all very true statements but the new and “fool-proof” methods and strategies and overleveraging and excess risk-taking only work when the economic environmental conditions allow them to work. Using the latest “fool-proof” investment strategy is like running around a thunderstorm with a lightning rod in your hand: if you’re unharmed after a while then it might seem like you’ve developed a method to avoid getting struck by lightning – but sooner or later you will get hit. And yet value investors are for the most part immune to the thunder and lightning. This isn’t at all to say that value investors never lose money, go bust, or suffer during recessions. However, by sticking to fundamentals and avoiding excessive risk-taking (i.e. dumb decisions), the collective value investor class seems to have much fewer examples of the spectacular crash-and-burn cases that often are found with investors’ who employ different strategies. As a result, value investors have historically outperformed other types of investors over the long term. And there is plenty of empirical evidence to back this up. Check this and this and this and this out. In fact, since 1926 value stocks have outperformed growth stocks by an average of four percentage points annually, according to the authoritative index compiled by finance professors Eugene Fama of the University of Chicago and Kenneth French of Dartmouth College. So, the value investing philosophy has endured for over 80 years and is the most consistently successful strategy that can be applied. And while hot stocks, over-leveraged portfolios, and the newest complicated financial strategies will come and go, making many wishful investors rich very quick and poor even quicker, value investing will quietly continue to help its adherents fatten their wallets. It will always endure and will always remain classically in fashion. In other words, value investing is vintage. Which explains half of this website’s name. As for the value part? The intention of this site is to explain, discuss, ask, learn, teach, and debate those topics and questions that I’ve always been most interested in, and hopefully that you’re most curious about, too. This includes: What is value investing? Value investing strategies Stock picks Company reviews Basic financial concepts Investor profiles Investment ideas Current events Economics Behavioral finance And, ultimately, ways to become a better investor I want to note the importance of the way I use value here. It’s not the simplistic definition of “low P/E” stocks that some financial services lazily use to classify investors, which the word “value” has recently morphed into meaning. To me, value investing equates to the term “Intelligent Investing,” as described by Ben Graham. Intelligent investing involves analyzing a company’s fundamentals and can be characterized by an intense focus on a stock’s price, it’s intrinsic value, and the very important ratio between the two. This is value investing as the term was originally meant to be used decades ago, and is the only way it should be used today. So without much further ado, it’s my very good honor to meet you and you may call me…
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