12 Characteristics of good investors In most cases, success is not a matter of luck. A person does not accidentally leave the house and a deal “falls” in his lap which will take care of him for life.
Experience shows that there are some characteristics of good investors – 12, in fact:
1. Patience
Want to see someone who’s going to make a mistake?
Look for someone who is under hysterical pressure to invest because “the money is just lying in the bank.”
We at VALORE, can wait half a year and 150 deals – until we get the right deal for us. Why hurry? A few months of return on a bad deal, do not compare at all to an amazing deal that comes after a few months of waiting.
The muscle of patience is important, because as Warren Buffett says, only those who give up good deals can make great deals.
Perseverance
I always say, “Perseverance is the greatest fear of failure.” Everyone gets excited at one point or another. But what sets outstanding investors apart is that they do not give up when there are gray clouds in the sky or because they are just bored.
Investing is a long-term game, it’s a lifestyle. Anyone looking for a flip, a hit, a spin – often finds that amidst all the thrills and interest, he has missed something much bigger – the possibility of building financial security and a homemade pension.
3. Act despite the fear
Some people think that courage is the opposite of fear. But as Dr. Berna Brown explains, if there is no fear, where is the courage here? Fear is an important mechanism inherent in us and its job is to protect us. Where does the problem start? When we let fear run us
Imagine you are driving, you are in control, you choose where to go and when, The fear – that he does not really know how to drive, sits next to you in the passenger seat and occasionally warns you of the dangers along the way. But in the end, you are the ones who are on the driver’s seat, and you decide whether to heed the warnings or not! If the fear does not know how to drive – then do not let him drive. Leave the steering wheel in your hands.
4. Fines for delays
If there are residents who are late in paying the rent, then why not profit from it?
4. Realistic expectations
Some investors are amazed that there are delays in a project. Others are stunned that there are sometimes losses as a result of an investment. “How can you lose money in real estate?” They wonder.
So, I send them to see how it is possible to buy assets from bankruptcies and receivers. You can hedge risks, you can evaluate, you can plan, and you can prepare. But success cannot be guaranteed and there can be no guarantee of zero delays. And if someone promises you that … it’s a black flag, and you better get out of the water.
Think that someone is offering to teach you how to drive, and assures you “if you learn from me, you will never have a car accident.” Will you believe him? Dreams apart and reality apart. Our expectations should be realistic.
5. Elimination of ego
There are many novice investors who are ashamed to ask questions. They do not want people to think they are amateurs and take advantage of them. The ego manages them, and the desire to be perceived as experts in the eyes of those who market the investment to them.
In fact, the opposite is true! It is important to create good and clear communication, and to make sure that no information gap is created.
Learn at your own pace, understand, internalize. Do not let anyone pressure you to make a deal. Only when you feel that you understand and have confidence in what you are doing, will you move forward.
6. Investment in education and tools and constant learning
“Who has the energy to learn? What am I paying the investment company for? – they need to learn!”
Well, to me, whoever does not understand what he is doing with his money – he is not investing – he is gambling.
If you want to be a good investor, take the time to learn what you are doing. After all, you are working hard on your money, so you should make sure you know what you are doing. Also on the other side, of the investment company – at least if it is a professional and decent company, they would prefer to work with smart people who ask sensible questions.
7. Investing time in establishing business relationships
So many good things happened to me, when I turned to other people and asked, “how can I help you?”.
Sometimes these are people I helped get out of a terrible investment that sucked in almost all their money. And sometimes it’s people I’ve helped make them even more successful.
Sometimes it turned out to be a business relationship, and sometimes it was “just” friendships.But anyway, with each passing day, people know you can turn to them for help and that’s the reputation you have. In the end, it also depends on the answer to the question “Why do you do what you do?”.
And for me, it’s never just the money – but also the people I meet along the way, the value I give them and the friendships I make.
8. Networking with other investors
It is not good for a person to be alone.
Especially, when it comes to investors.
What are others investing in? Why? What opportunities did they discover? What risks or problems did they reveal?
What can they teach you and how can you help them?
We are stronger as a group. That’s the basis of the wisdom of the masses, no?
9. Limit your study period until you actually invest
Do yo know the eternal students, who just want to study and learn more, and have 5 degrees, just to get ready for the day when they will start working – but in fact, they never start living? Same with investors.
Learning is great, but do not forget that someday, you should also act.
What makes a profit is the application of learning.
Therefore, smart investors set goals for themselves: “Within 3 months, I am considering 3 investments” or “Within half a year, I am investing in my first deal!”.
Yes, it’s scary, but … you’re the ones sitting in the driver’s seat, right?
10. Recurring investments of profit or savings
One of the things that almost everyone “knows” but does not implement, is the principle of compound interest.
Did you profit? excellent! Invest the profits again.
Valore’s investors find that if they repeatedly invest their money, an investment $300,000 can yield them a monthly income of ~$4,000 within 6 years, which is even before the capital gains.
But … that means we see investing as a way of life and rolling the capital repeatedly to other investments, and not pulling it so that it sits in the bank or wastes our capital gains.
A vacation is fun, and a new car is wonderful too – but it’s better to fund them from your passive income, rather than from equity.
11. Risk diversification
One of the things that almost everyone “knows” but does not implement, is the principle of compound interest.
Did you profit? excellent! Invest the profits again.
Valore’s investors find that if they repeatedly invest their money, an investment $300,000 can yield them a monthly income of ~$4,000 within 6 years, which is even before the capital gains.
But … that means we see investing as a way of life and rolling the capital repeatedly to other investments, and not pulling it so that it sits in the bank or wastes our capital gains.
A vacation is fun, and a new car is wonderful too – but it’s better to fund them from your passive income, rather than from equity.
12. Understand when to let go of an investment
Persistence is important, but not at any cost and not in any case. The world is changing, the economy is changing, opportunities are changing and so is our understanding of when we should and must even consider new things.
Sometimes, what once worked for you – no longer works. Sometimes, the level of risk varies. So smart investors, are looking at the market, consulting with other investors, and constantly trying to figure out where the wind is blowing.
Sometimes, we need to understand that what has brought us this far will not take us any further – and that we need to recalculate a trajectory.
