Personal Finance

Success Clues Part 2

Jun 26, 2016 | Personal Finance

In part 1, the greatness of Peter Lynch was covered. Unlike Warren Buffett, who is CEO of Berkshire Hathaway, a holding company for 75 wholly-owned businesses and a portfolio of publicly-traded companies, Peter was a fund manager, and is famous for buying 1,000s of stocks in a given year. His investment philosophy allowed him to purchase a broader range of stocks, including more speculative bets. Warren is the complete opposite, and his risk-averse attitude is well crafted in his saying: “I don’t look around for 7-foot bars; I look around for 1-foot bars that I can step over.” This means that any unnecessary risk is to be avoided. Warren is a risk expert, as the core of NYSE:BRK.B is insurance companies.

As I said in Success Clues Part 1, you must train yourself to think like the wealthy in order to become one.

What Warren says

“In my mind, it is too difficult to make hundreds of smart decisions in a lifetime. I only want to make a few of them per year.”

WRG interpretation

Warren is touching on a subject we dedicated our debut Classic Issue to. When investing, we want to make sure we realize we are humans, and focus on what we are capable of doing perfectly. In 2016, Wealth Research Group has turned its attention to the resource sector. We have become experts on less than 20 companies that we believe can become 10-50 times larger than they are in a relatively short time – 3-5 years. We will be announcing updates soon to subscribers only using our email blaster, so make sure you are a member.

Warren also says

“The most important quality for an investor is temperament, not intellect.”

WRG interpretation

If you think that smart people will always be one step ahead of you, you are seriously mistaken. When it comes to decision making in critical times, the intellect of a person is almost subdued. Your self-discipline, along with emotional control, determines how your portfolio will look in 20 years. On Black Monday, it was Warren Buffett who was buying Coca-Cola shares, when the other people — many of whom are smart and intelligent — were selling.

If you don’t have any education, but have the will to read a number of investment books and lead your life to a point when the philosophies taught are your own, the results will be epic.

Your ability to think clearly in times of uncertainly is a money-making skill, and you can prepare for it by reading the special report we created specifically for this subject – Position Sizing.