Qualities of a Good Investor
Everyone has self-doubt whether they are going in the right direction or not. In school, they judge us on the basis of the number of marks we score. There is no such test in the life of an investor. Hence I will solve your problem by the end of this blog, you will explore yourself as a good investor or the one who should stay away from investing.
1. Good knowledge of the investment you own
Are you comfortable dealing with shares, financials, and annual reports? If you have a hunger to learn about the economy, and businesses then you don’t need any help. Congratulations! You are on the path to becoming a good investor. If you are overwhelmed by the financial terms then you should consider hiring a financial planner or simply investing in a mutual fund.
2. Sit on the table for doing nothing
How you can exclude the role of patience in the life of a good investor? When a student asked well-known investor Mohnish Pabrai about how he would teach the patient to a child. “I would tell him to paint a wall and just observe it by sitting on a chair for several years” Mohnish jokingly replied.
In the stock market sometimes there are no good opportunities to buy stocks. At such time you just need to sit and wait for the right opportunity.
3. Do you have contradictions in your investments?
If you feel anxious about your investments then congrats you are a good investor, at least you are thinking about it. A good investor always finds ways how he can increase his wealth by investing in the right asset class. In the life of investors, there is always self-doubt and there is nothing wrong with it after all real money is being invested.
4. Invest not only in money
The true investor not only invests in equities but he spends quality time with his family and loved ones. What’s the point in making huge money but being unable to live a good life with it? Hence a good investor never forgets to work on his health, relationship, and peace.
5. Make a financial plan
There is no goal without a proper plan and a good investor understands it very well. A good investor makes the right financial plan and executes it.
6. Emergency fund
An emergency fund is how many days you can survive if any odd event happens. Ideally one should save a minimum of 6 months of his/her salary.
7. Do you often make the wrong investment?
Mistakes in the world of investing are totally fine, even the biggest investor of all time have done numerous mistakes. But if you are committing the same mistakes again and again then you need to hand over the charge of your financials to the mutual funds.
With the right knowledge and curiosity to learn how the world works anybody can make a fortune from the stock market. I hope I can help you in shaping your financial knowledge in the right direction. Do let me know in the comment section what do you think of yourself as an investor?