How to research successful investment masters?

Table of Contents

Reason is more important than result

Reading biographies of great or successful people is one of the most effective ways for us to succeed in the future. Everyone knows that when reading biographies, we hope to explore the real reasons behind their success, not the story itself (this is the result). There is no difference in investment.

Figure out the thinking philosophy behind

When we study successful investment masters who are respected by the world, the focus should not be on those stocks they bought; just imagine that successful investors who did not buy that stock at the time would also be successful. With a successful investment method, in any time environment, buying any stock (of course the stocks filtered by his investment method) will be successful. What we need to do is to understand why these successful investors chose to buy that stock at the time?

Why not choose another stock? what is the reason? Before finally deciding to invest in this stock, what kind of research was conducted during the whole process? What is the starting point? What is the logic behind the formation of their final investment judgment? To put it bluntly, it is necessary to figure out the thinking behind the whole set of successful investors’ judgment of investment (whether this set of things is called investment principles or investment philosophy used by the media, it does not matter what it is called).

Successful investors will success in any era

A successful investor, even if he did not buy that stock at the time, he will still be very successful now. In contrast, most of the other retail investors at that time, if they bought the same stocks at the same time, most of them still cannot succeed. This is easy to explain. Most retail investors will show animal instincts (John Maynard Keynes’ classic term) when the market fluctuates, fear in their hearts, and immediately get out.

However, successful investors have gone through countless rigorous filtering and deductions before buying, and they have already convinced themselves that they have established confidence in holding stocks and set up holding strategies that will not be affected by others or the market. In the end, of course, only the one can stick to it and hold it for a long time, will achieve great success.

Individual stocks are not important, don’t be short-sighted

However, most of the retail investors who bought the same stocks with investment masters at the same time will buy based on the market performance of the stocks in the past limited time, the stocks touted or mentioned by celebrity, investment consultants, financial programs, or the fear of missing the train to get rich, want to get in the car quickly (please refer to my blog article “No need to fear to miss out” on this topic).

Regardless of the reason, the common feature is: buying individual stocks is not based on your own research. Such stock selection and investment methods are extremely dangerous, and it is impossible to build any confidence in holdings; this also leads to any market fluctuations that are beyond their control, they will definitely be washed out. Most investors had no choice but to look for another touted stocks, and it would go on and on again and again, but in the end it would be nothing.

There is no formula for success but a method

This is what I reminded investors in the postscript of the book “The Rules of Super Growth Stocks Investing” that investors must be able to find investment targets or individual stocks before they can invest succeed. Relying on financial television, the exchange of opinions with relatives and friends or on social occasions, investment consultants, the opinions recognized by everyone, or the stocks touted by media or celebrity; it is impossible to make your investment successful.

There is no formula for investment success, but there are methods; what we want is to find the method ourselves, not relying on the stocks touted. It takes time and a lot of effort to find out the investment method that belongs to your own success, but once you establish your own investment method, these costs are worth it, because you have found the key to success.

Disclaimer

The content of this site is the author’s personal opinions and is for reference only. I am not responsible for the correctness, opinions, and immediacy of the content and information of the article. Readers must make their own judgments.
I shall not be liable for any damages or other legal liabilities for the direct or indirect losses caused by the readers’ direct or indirect reliance on and reference to the information on this site, or all the responsibilities arising therefrom, as a result of any investment behavior.