{"id":1709,"date":"2021-11-02T23:56:00","date_gmt":"2021-11-02T15:56:00","guid":{"rendered":"https:\/\/www.granitefirm.com\/blog\/us\/?p=1709"},"modified":"2025-12-03T21:00:30","modified_gmt":"2025-12-03T13:00:30","slug":"investment-philosophy","status":"publish","type":"post","link":"https:\/\/www.granitefirm.com\/blog\/us\/2021\/11\/02\/investment-philosophy\/","title":{"rendered":"What should a great investment philosophy include?"},"content":{"rendered":"\n<p>Investment philosophy is what I found that investment books and media in Taiwan like to use the four words &#8220;investment method of mentality&#8221; . Mainland China, Hong Kong, or the United States are not like Taiwan. The media like to explore the &#8220;investment method of mentality&#8221; of successful investors.  However, I personally always think that Taiwan\u2019s translation or use of proper nouns is more appropriate than mainland China and Hong Kong. <\/p>\n\n\n\n<p>For example, American films are shown in China, Hong Kong and Taiwan. Taiwan always translates film titles better. People often know the content of the movie or the main message the director wants to convey when they look at the title translation in Chinese; instead of translating the English into the title directly, or translating it so unintelligible.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/11\/02\/investment-philosophy\/#Investment_is_not_science_but_there_are_ways_to_succeed\" >Investment is not science, but there are ways to succeed<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/11\/02\/investment-philosophy\/#General_direction\" >General direction<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/11\/02\/investment-philosophy\/#Investors_characteristics\" >Investor&#8217;s characteristics<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/11\/02\/investment-philosophy\/#Investment_psychology\" >Investment psychology<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/11\/02\/investment-philosophy\/#Investment_research\" >Investment research<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/11\/02\/investment-philosophy\/#Related_articles\" >Related articles<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading has-medium-font-size\"><span class=\"ez-toc-section\" id=\"Investment_is_not_science_but_there_are_ways_to_succeed\"><\/span><strong>Investment is not science, but there are ways to succeed<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>I think the four words &#8220;investment method of mentality&#8221; contain too much meaning, which is the purpose of this article. Just like everyone wants to know the &#8220;mind&#8221; of a successful investor, the &#8220;mind&#8221; (for the time being I can&#8217;t find the appropriate English words for &#8220;investment method of mentality&#8221;, it can be temporarily translated as Philosophy) is mostly psychological, basically very boring (see my blog article &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/09\/24\/full-time-investor\/\" target=\"_blank\" rel=\"noreferrer noopener\">Full-time investor<\/a>&#8220;) . <\/p>\n\n\n\n<p>And many of them are clich\u00e9s. If there are such books, and they are usually sold very poorly. Most people are reluctant to spend time thinking about these topics on investing, but hope that they can get a touted stocks from the celebrities, or leave no&nbsp;stone unturned to go through all books to find formulas for calculating stock prices, guess the market or timing, or study various line graphs, hoping to guess the high and low points of stock prices for swing trading.<\/p>\n\n\n\n<p>Judging from objective facts such as the history of the stock market over the past 100 years and the experience of successful investment masters, these methods are useless and do not help investors&#8217; remuneration. why? Because investment is not a science, but an art. Most of the investors who can be classified as successful investment masters in history agree with the view that &#8220;<a href=\"http:\/\/mastersinvest.com\/investingartorsciencequotes\" target=\"_blank\" rel=\"noreferrer noopener\">investment is not a science<\/a>&#8221; (including Buffett, Keynes, and Peter Lynch). There is no formula for investment, but there are methods. Most of the successful investment methods of these successful investment masters are psychological, very basic, but easily overlooked. These elements are what we call &#8220;investment method of mentality.&#8221;<\/p>\n\n\n\n<p>What exactly does the investment mentality include?<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><span class=\"ez-toc-section\" id=\"General_direction\"><\/span><strong>General direction<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Investment Strategy<\/li>\n\n\n\n<li>Investment principles<\/li>\n\n\n\n<li>Investment skills<\/li>\n\n\n\n<li>Portfolio management\n<ul class=\"wp-block-list\">\n<li>Money management<\/li>\n\n\n\n<li>Risk Management<\/li>\n\n\n\n<li>Trading skills<\/li>\n\n\n\n<li>Concentrate investment or diversify investment<\/li>\n\n\n\n<li>Do you take a balance of regular combinations?<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><span class=\"ez-toc-section\" id=\"Investors_characteristics\"><\/span><strong>Investor&#8217;s characteristics<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Discipline<\/li>\n\n\n\n<li>Patience<\/li>\n\n\n\n<li>Will<\/li>\n\n\n\n<li>Insights<\/li>\n\n\n\n<li>Independent thinking<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><span class=\"ez-toc-section\" id=\"Investment_psychology\"><\/span><strong>Investment psychology<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Investment behavior<\/li>\n\n\n\n<li>Investment concept<\/li>\n\n\n\n<li>The courage to be different<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"155\" height=\"97\" src=\"https:\/\/www.granitefirm.com\/blog\/us\/wp-content\/uploads\/sites\/2\/2022\/09\/adobe-1600x1200-1.jpg\" alt=\"investment philosophy\" class=\"wp-image-13974\"\/><figcaption class=\"wp-element-caption\">credit: Adobe<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><span class=\"ez-toc-section\" id=\"Investment_research\"><\/span><strong>Investment research<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Reading<\/li>\n\n\n\n<li>Financial report analysis<\/li>\n\n\n\n<li>News and information collection<\/li>\n<\/ul>\n\n\n\n<p>When we want to understand a certain investment method that we admire, or want to get familiar with the successful people in investment, we need to figure out these things listed above. Rather than how much money he has, which stock he currently invests in. <strong>The most important thing is to figure out how to succeed, the way he or she invest success<\/strong>. This is also the purpose of my other blog post &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/05\/24\/how-to-research-successful-investment-masters\/\">How to research successful investment masters?<\/a>&#8220;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Related_articles\"><\/span>Related articles<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/12\/02\/investment-philosophy-2\/\">What is investment philosophy?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/09\/08\/investment-strategy\/\">What is an investment strategy?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/10\/20\/thinking-outsourced\/\" target=\"_blank\" rel=\"noreferrer noopener\">Thinking cannot be outsourced<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/06\/06\/seeking-facts\/\">Seeking facts is the first step in investment<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/02\/28\/think-keep-sane-in-crowd\/\">In the crowd, it&#8217;s impossible to think independently or keep sane<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/01\/15\/crowd-get-lost\/\">The crowd tend to lose their judgment and get lost<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/09\/26\/out-of-the-ordinary\/\">How difficult to be out of the ordinary<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/09\/01\/investment-is-not-voting\/\">Investing is not voting<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/02\/28\/think-keep-sane-in-crowd\/\">In the crowd, it&#8217;s impossible to think independently or keep sane<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/07\/27\/survivorship-bias\/\" target=\"_blank\" rel=\"noreferrer noopener\">People believe successful investors are survivorship bias cannot succeed<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/11\/02\/investment-philosophy\/\">What should a great investment philosophy include?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/02\/24\/andy-lin-investment-style\/\">The key points of Andy Lin investment style<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/09\/26\/long-term-investment-2\/\" target=\"_blank\" rel=\"noreferrer noopener\">Andy Lin&#8217;s long-term investment experience sharing<\/a>&#8220;<\/li>\n<\/ul>\n\n\n\n<p><em><strong>Disclaimer<\/strong><\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><em>The content of this site is the author\u2019s 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.<\/em><\/li>\n\n\n\n<li><em>I shall not be liable for any damages or other legal liabilities for the direct or indirect losses caused by the readers&#8217; 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.<\/em><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>What should a investment philosophy include? I found that investment books and media in Taiwan like to use the four words &#8220;investment method of mentality&#8221;. Mainland China, Hong Kong, or the United States are not like Taiwan. <\/p>\n","protected":false},"author":1,"featured_media":13974,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19,69,68,13,14,17,16,18,1548,71,70,67,540,779,539],"tags":[],"class_list":["post-1709","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing-principles","category-discipline","category-insight-second-level-thinking","category-investing-behavior","category-investing-concept","category-investing-psychology","category-investing-skills","category-investing-strategy","category-investment-philosophy","category-out-of-the-ordinary","category-patience","category-perseverance","category-reading","category-risks","category-thinking"],"_links":{"self":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/1709","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/comments?post=1709"}],"version-history":[{"count":26,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/1709\/revisions"}],"predecessor-version":[{"id":40499,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/1709\/revisions\/40499"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media\/13974"}],"wp:attachment":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media?parent=1709"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/categories?post=1709"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/tags?post=1709"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}