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February 09 2016

peteresho6

Importance of confidence as an investor | The one key ingredient for success


Peter esho
Everybody knows the story about Warren Buffett investing in Coca Cola. I hate that story. Why? Since the majority of people miss the actual about Buffett’s success.

Investor confidence
They begin talking about his research method, how he values companies, his how-to's. His personality. His history, network and influence. The value of Coca Cola’s business etc. That means nothing. There has been many other businesses with the same set of numbers that he could have invested in and possibly did. We will never know because every one of the mainstream focuses on the fast sighted narrative.

After more than 10 years in investment markets and having met some of the brightest and a lot successful minds in the business, I have discovered that the greatest ingredient to investor success is confidence. Confidence definitely makes the difference.

Confidence in yourself may be the starting point.

Teaching yourself the important bits, but then having the courage to back yourself. This is actually the first step. Don’t invest in anything before you are truly confident in what you can do to make money. When you’re positive about yourself, loss doesn’t be a problem. You know that you are able to bounce back, learn from it and turn into even better.

Once you have confidence in yourself, you then seek opportunities. This can take a long period of time. Don’t rush. A good investor understands opportunities are certainly not finite, they are abundant. This is why successful investors don't fret missing out on market movements.

Seeking opportunity vs. finding excuses

A confident investor seeks opportunity, an un-confident investors finds excuses to sway far from opportunity. Un-confident investor (uncertain if that is the right term, but I don’t care, you know what I am talking about) is always unsure about themselves. Questioning the market, questioning the numbers.

The confident investor doesn’t watch what is the news or read the newspapers. She or he doesn’t care about the market, they care about the deal and they care about their own circle of influence. When they look to the market, they are doing so with the aim of making money. They move the market environment into their circle of influence and outside of their circle or worry.

How to build confidence being an investor

Here are the points I’ve done myself to build confidence as an investor:

 Don’t read the news unless you are only after the facts - This news is focused on reporting problems, collapses, discouraging opportunity. Not so good news sells. This distorts what you can do to find opportunity which enable it to lead you to over complicate investing (which after a while becomes simpler).
 Surround yourself with the appropriate people - There’s silly in taking advice from anyone who has never invested before or takes their opinions in the media. Find folks who suffer from built confidence, backed themselves and learnt important lessons which they can pass on for you.
 Learn to lose - The top investors are the ones which will take a loss and proceed. It doesn’t hurt them, the truth is they actually enjoy it as it helps them learn important lessons that they'll apply to future decisions.
 Value yourself - A lot of people struggling with money think there exists a shortage of money and they aren’t entitled to it. The truth is money is plentiful and even when there are shortages, we print more. Abdominal muscles wealthy don’t think in shortages. Change your thinking to think regarding money being abundant and plentiful. This isn’t some esoteric modern concept but reality.

Don't be the product, buy the product!

Schweinderl