Five Habits of Successful Investors
“I don’t look to jump over seven-foot bars; I look around for one-foot bars that I can step over.” — Warren Buffett
Successful investors don’t need to hit home runs. They simply want to get on base. It doesn’t generate the excitement of a home run, but singles and doubles win the game.
How can you find Buffett’s one-foot bars that you can step over?
- Create a financial plan and stick with that plan. Over time, life changes and you’ll tweak your plan, but the outline of the plan is the roadmap to your financial goals.
- Be disciplined and learn patience. Save consistently, dollar-cost average, and keep your eye on value and the long-term.
- Are you diversified? Diversification doesn’t guarantee you won’t experience losses, but diversifying helps manage risk.
- Control your emotions. A raging bull market or ugly bear market can tempt us to get off our pre-determined path. Successful investors resist the emotional lure.
- The tortoise and the hare. Hoping to hit too many home runs can result in too many strikeouts. Build wealth over the long-term.
Investor’s corner
Today’s world of investing choices allows even the smallest investors to diversify and succeed.
While complexity may lurk around every corner, the principles successful investors use are pretty straightforward.
