Spending $XxK on Investment Courses: What Makes a Great Investor? Nature vs. Nurture


Singapore-based 8i Holdings seems to lack investing nous it espouses (Link)




This news headline in The Business Time  dated 31st Jul 2018 really caught my attention as I wonder if value investing is a result of “nature or nurture “. Can someone paying few thousand dollars to attend the so-called “ Value Investing Courses “ be able to practice what they teach and beat the market by getting Alpha or be beaten by Beta eventually. ( Link : Alpha , Beta , Smart Beta )


This is an interesting topics and debatable whether one can really learn to be a great investors like other's skills ( e.g sports / driving / abacus etc ). If not , then why do we need to pay few thousand dollars just to learn how to invest or become next “Warren Buffett “ ( link : Success in Investing : Skill or Luck )

My suggestion will be going to library and pick up some good investment books ( link : My Book List ) , learn from your own or other’s people mistake throughout different market cycles ( link : Market Cycles )

It also doesn’t require you to be very smart or have exceptional high IQ to be a great investors as well (link : Your IQ vs ROI ) , one just need to have some basic accounting and economic background to read the balance sheet / PL statement and also some fundamental of macro-economics which affect the market and economy.

<Image Credit: slideshare.net>
For me, the more important factors will be the “psychology “ aspect of you and Mr. Market ( link : Psychology in Investing ) as well as understand the important of Time ( Link :Here ) and Timing (Link: Here)of the market.

We have patience in real-estate investment (buying second house as investment ) and would keep it up to 10-20 years to get good R.O.I or investing in our own business in years to reap the good result. We don’t ask how much our house or business value each and every day but when come to stock investing, our mind-set totally change. Why ? ( Link : Patience is Your Biggest Investment Asset )

In order to be a successful investor, one will need to have patience. When we make our calculations on any investment, we must prepare to wait to make sure our investment plan materialize in the long run. We must also plan to take advantage of any short term bear market or when crisis hit, be ready with your war-chest and have strategy on how to deploy it effective and systemmaticaly.
( Link :Stock Market Crisis and War-Chest)


"I never attempt to make money on the stock market. I buy on assumption they could close the market the next day and not re-open it for five years." -- Warren Buffett



Some good articles for further reading :

Does nature trump nurture when it comes to investing? ( from The Irish Times )

Academic research confirms that how our brains are wired can affect investment performance. In fact, a little bit of brain damage may be no harm. 

Great Investors = “functional psychopaths


Nature vs. Nurture: What Makes a Great Investor? ( From US News.com)








Keep calm and carry on!
Over the period of time a good investor creates wealth due to his patience. It is probably the finest quality to have. A good investor has faith in his plans. They usually do not feel bad about the 10% downtick; they would rather sit tight to celebrate the 100% uptick. They are persistent about sticking to the plans. They usually do not get into the buy and sell trends.

Comments

  1. Besides attending the course; one still needs to pay more money on subscription to get into the inner world of value investing and peep into how CEO or Guru construct their portfolio. That is the real cash flow. LOL!

    ReplyDelete
  2. Yah... recurring free cash flow ...very good business model ! :D

    ReplyDelete

Post a Comment

Related Posts Plugin for WordPress, Blogger...

Labels

Show more

This Month's Top Blog Posts

OMG !! October : The Month of Market Crashes

3rd Qtr 2018 : Dividend and Portfolio Update

Has The Fed Really “Gone Crazy” ?

M1: Pre-Conditional Voluntary GO at $2.06

2nd Qtr 2018 ; Dividend and Portfolio Update