Learn Cryptocurrency
8 Mar 2021

How to Invest Like a Super Investor?

Nisha Ramesh

Investing is not a single road for all investors. The views and strategies of each investor vary from the other.

Investors across the world may disagree on many things. Still, they all agree that success in investing comes with a steadfast strategy and commitment. Most people start investing with very little knowledge of the market, leading to more loss than profits.

If you want to succeed as an investor, you need to set some ground rules and form a strategy that suits you best. And to begin, what better way to do it than asking some of the super investors of our times. 

Here are some thumb rules followed by some of the most successful investors globally. 

Patience is Key

“The Big Money is not in the buying and selling, it is in the waiting” – Charlie Munger.

Charlie Munger is one of the big investors of Wall Street. He also owns several other businesses and real estate in America. And according to him, patience has been the crucial factor of his long and successful investing journey. 

Patience as such, in general, is a good virtue. Nothing great is born from impatience, and the same applies to investments too. I

f you invest in an asset intending to see where it will be in the next decade, it does not matter what may happen in one, three or five years. Most assets tend to appreciate in the long run. 

So:

It is an intelligent approach to invest in something and leave it be for a more extended period. At the time of maturity, the reinvested returns from your investments would have multiplied manifold. 

Also, by being patient with your investments, you will weather the short term crisis that hit the economy once a while. 

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Do the Research

“I like to buy things I can understand. I do a lot of research on things”. – Warren Buffet

Warren Buffet is considered a giant investor of today. He has always been vocal about his strategies and mantras to success. 

He always emphasis doing research. While there is nothing wrong with exploring new assets, it could be dangerous to invest in them without understanding them first.

Research is the key to success in investing. 

Suppose you are shopping for clothes, would you not check the size, quality, fit and price before buying them?

Similarly, while investing in an asset, it is essential to analyze the quality, value, demand and cost in the market before you buy them. Studying the asset before venturing into it helps you find the best investment opportunities. 

Ignore Hype and Noise

“Don’t Invest Based On Hype And Noise”- Ilan Tzorya.

Ilan Tzyora is a million-dollar entrepreneur who has invested heavily in crypto-based companies. Owing to his massive investment in cryptocurrency, he is also known as ‘The King of Crypto’.

He started his investment journey with a small amount under a financial advisor. After losing some capital, he realized the importance of research and analysis in investing and soon became his own financial advisor. 

One of his investment mantras is not to follow the herd in investing. The market can be overwhelming, with many advisories giving you different perspectives of investing. Especially in crypto, making decisions based on hype and noise could be dangerous because of its high volatility. 

Instead:

It may be wise to ask experts or equip yourself with sufficient knowledge before buying a coin. To be a successful investor, you may need to practice patience and acquire the correct information. 

Assess your Risk Tolerance

“The investor’s chief problem and even his worst enemy is likely to be himself”. – Benjamin Graham. 

Risk is a part of the investment; it’s only the degree of risk that varies for each asset class.

Taking risk makes some people nervous, while others jump into the opportunity and turn it to their advantage. Which category do you fall in? Be honest with yourself here. It will help you to decide which asset class you should add to your portfolio. 

Most investors either underestimate or overestimate their risk tolerance while investing. While the former may lead to losing good opportunities for making money, the latter leads to losing money in the capital market.

So, it is essential to know where you stand as an investor in terms of taking risks. 

Bottom Line

Wrapping up, though there are many successful investors globally, not everyone followed the same strategy to succeed. So, I would suggest that you try and implement the designs that suit your investment profile and consistently follow them. 

If you take the above points as a guide and invest in your way, you may be well on your way to becoming a super investor. 

All the best! 

[su_note] KuberVerse is an educational initiative. Anything expressed here directly or indirectly is not investment advice. And we ask you to do your own research before investing. [/su_note]

Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.

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Nisha Ramesh

Content Writer

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