Investment

Investor School: Is It Born or Made?

Investor School: Is It Born or Made?


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No person is born with an investor profile, but learns, transforms and perfects in a logical and natural way. William Cobie explains how this process consists of several stages, similar to what an investor school would be.

Passion for saving

The first step is to be passionate about saving. Passion becomes a game and the analysis of savings is a daily activity: “how much have I saved this month” or “what extraordinary income will I have” are the questions that begin to ring in the investor's head periodically.

At this stage, you generally start with safe investments, such as time deposits or a little government debt.

Exponential learning

And then an incredible period of observation and learning begins. Interest in knowing the different markets increases exponentially, events begin to relate and understand price fluctuations.

Passion continues to grow and investors begin to take risks with listed companies in their country with which they have a certain sympathy, either for the sector, for their star product, because they sponsor a team they are fond of or because they feel identified with their CEO.

Visualization of opportunities

Then the investor begins to be aware of his own abilities, of his ability to anticipate with respect to the environment ... and opportunities begin to appear.

He has understood the game and is able to distinguish scams from real opportunities.

Although it maintains a percentage of investment in lower risk products, generally fixed income, its focus is on national and international equity products.

Investor experience

After the first successes, sometimes caused by the market cycle itself, comes the excess of confidence that causes the assumption of greater risk and / or relaxation in the control of investments.

The actual experience is acquired after the first major failure.

After this first failure, many investors leave the activity because pride, vanity or fear of losing again excessively reduce their ability to anticipate. Those who turn failure into learning and understand that investing is a long-term process and that losing is part of the game, then they graduate from school and are able to make some stable investments, some speculative, they go in, out, and ultimately They understand the functioning of the market as a whole that moves and that has a lot of logic.

Thus, the last step is to always be prepared. To take an investment opportunity you have to be quick and determined.

Opportunities must be seized.



Video: Warren Buffett, Chariman, Berkshire Hathaway Investment Group. Terry Leadership Speaker Series (May 2022).