Creativity is worthless in investment

Table of Contents

How are you different from the masters?

Ordinary people’s opinion

People believe creativity.

Common people’s opinion is that as human civilization progresses with the advancement of time, our society is also changing and progressing every day. Everyone is trying their best to seek new ideas and seek various ideas in order to seize the opportunity. On the road of investment, most people also think so. Only by finding new methods, adopting new ideas, and making breakthroughs can investment succeed, beat the market, beat others, and obtain excess returns.

But I disagree with this view.

What the masters do

First of all, on the road of investment, investors should first think about the most basic principles, because your basic investment principles will guide your entire investment career, and of course affect the final total return of your investment career. The basic investment principles of the few most respected investment masters in history have three commonalities:

Basically consistent across their investing careers; fine-tuned and enhanced over time of course, but what I’m emphasizing is the entire investing career.
Moreover, their basic investment principles are even similar; for example, they are mostly long-term investors and advocate concentrated investment.
Be patient and persevere. As Buffett famously said: “Successful investing takes time, discipline, and patience.”

The consensus and practical practices of the above three investment masters are in conflict with seeking innovation and change or seeking creativity.

As I mentioned in Section 4-1 of the book “The Rules of 10 Baggers“, on page 184, “creativity” is of no use to investment. Except for the high similarity in the basic investment principles of all investment gurus, no investment guru will emphasize the so-called investment creativity.

Some typical behavior

Because of this, many investors strive to do the following things every day:

Go with the flow, run into the market during a bull market, and sell out of the market during a bear market
Chasing the bright spots in the stock market and seeking popular targets
Short-sighted and short-sighted, all investment ideas are based on short-term profits
Chasing celebrity effect
No independent thinking
Afraid of being different

These behaviors have only one thing in common: the pursuit of fashion, love the new and dislike the old. The ending will not be surprising, and it is impossible to obtain a long-term and satisfactory return on investment.

Investing is complicated

As I quoted Buffett at the beginning of Chapter 1, Section 1-1 of my first investment book “The Rules of Super Growth Stocks Investing” Buffett said: “Investing is simple, but not easy.”

Investing is a very complicated matter. The complexity of the stock market is far beyond your imagination. It is impossible to have a fixed formula. This is also the difficulty of investing in the stock market.

These things are conducive to investment?

In comparison, the following things will help your investment. Please note that the following list, in the minds of ordinary people, or people’s consensus, are so-called clichés, nothing new, sneering, even foolish, inefficient behaviors──that is, there is no new idea at all.

Experience

The formula will not help you invest and make long-term profits, but the life experience of investment masters is definitely helpful. The reason is very simple-let the facts speak for themselves, their successful investment practices have passed the test of time. Investment masters use the return on investment of their entire investment career to prove that their experience is credible, reliable, and effective.

Diligent

Asked by recent business school graduates how to become smarter, Buffett once held up a stack of papers and said, “Read 500 pages like this every day.”, “That’s how knowledge works. It builds up, like compound interest. All of you can do it, but I guarantee not many of you will do it.”

Diligence is helpful on the road of investment. As for how much help you will have, it must depend on each person’s situation and how much effort you are willing to put in.

Knowledge

Investing requires breadth, not depth. Absorb knowledge at any time, and any relevant knowledge will help your investment. And reading is not only the most important way, but also an irreplaceable way of acquiring knowledge. No other way can replace it. No matter how advanced human civilization and technology are in the future, this will not change at all.

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.