The 23 Winning Investment Habits of the World’s Masters Investors – Warren Buffet and George Soros!

Winning Habit Number 1:
• Believes his priority is always preservation of capital.
Winning Habit Number 2:
• Risk Averse.
Winning Habit Number 3:
• Has developed his own investment philosophy (personality,ability, knowledge, tastes and objectives).
Winning Habit Number 4:
• Has developed and tested his own personal system for selecting buying and selling shares.
Winning Habit Number 5:
• Believes diversification is for the birds.
Winning Habit Number 6:
• Hates to pay taxes and other transaction costs and arranges his affairs to legally minimize tax.
Winning Habit Number 7:
• He only invests in what he understands.
Winning Habit Number 8:
• Refuses to make investments that do not meet his criteria.Can effortlessly say “NO” to everything else.

Winning Habit Number 9:
• Is continually searching for new investment opportunities that meet his criteria and actively engages in his own research. Likely to listen only to other investors or analysts who he has profound reasons to respect.
Winning Habit Number 10:
• When he can’t find an investment that meets his criteria, he has the patience to wait indefinitely until he finds one that does.
Winning Habit Number 11:
• Acts instantly when he has made a decision.
Winning Habit Number 12:
• Hold a winning investment until a pre-determined reason to exit arrives.
Winning Habit Number 13:
• Follows his own system RELIGIOUSLY.
Winning Habit Number 14:
• Aware of his own fallibility. Corrects mistakes the moment they become evident. As a result suffers more than small losses.
Winning Habit Number 15:
• Always treats mistakes as LEARNING EXPERIENCE.
Winning Habit Number 16:
• As his experience increases, so do his returns. He now seems to spend less time to make more money. Has “paid his dues”.

Winning Habit Number 17:
• Almost never talks to anyone about what he’s doing. Not interested or concerned with what others think about his investment decisions.
Winning Habit Number 18:
• Has successfully delegated most if not all of his responsibilities to others.
Winning Habit Number 19:
• Lives far below his means.
Winning Habit Number 20:
• Does what he does for stimulation and self-fulfillment and not for money.
Winning Habit Number 21:
• Is emotionally involved with the process of investing and can walk away from any individual investment.
Winning Habit Number 22:
• Lives and breathes investing 24 hours a day.
Winning Habit Number 23:
• Puts his money where his mouth is.

Learn Intelligent Ignorance

Education teaches us what we can do and also teaches us what we cannot do.

I'm looking for a lot of men with an infinite capacity for not knowing what cannot be done. --Henry Ford

Henry Ford gave this world the V8 engine. He did not have much formal education. In fact, he did not go to school beyond the age of 14. He was intelligent enough to know there had to be a V8 engine but he was ignorant and didn't know how to build it. So he asked all his highly qualified, educated people to build one. But they told him what could be done and what couldn't. According to them, a V8 was an impossibility. But Henry Ford insisted on having his V8. A few months later he asked his people if they had the V8 and they replied, "We know what can be done and we also know what cannot be done and V8 is an impossibility." This went on for many months and still Henry Ford said, "I want my V8." And shortly thereafter the same people produced his V8 engine.

How come? They let their imagination run beyond academic limitation. Education teaches us what can be done and sometimes also teaches us false limitations.