We spend a lot of time deciphering how to make money. We meticulously scour companies that fit the bill for value investing with lower than average sales to produce higher dividend yields. Likewise, any avid investor is always on the lookout for companies with above-average rates of growth. These are the rare gems that justify a higher stock valuation.
The world’s most successful investors are a diverse bunch. They have a massive portfolio range and a long-standing record of isolating untapped potential in companies. We could sit and listen to their advice for days without being able to grasp precisely how they do it.
Most people start investing with the goal of having more money, whether it’s to pay off their mortgage or afford a new car. While there is no doubt that the world’s most successful investors could do this a million times over, it seems it is the love for the art of investing that drives them. Keep reading to discover some life lessons from the world’s most successful investors.
Who are the world’s most successful investors?
According to Yahoo Finance, the top 10 investors worldwide are those listed in alphabetical order below:
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Warren Buffett – American
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John Bogle – American
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George Soros – American (Hungarian born)
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Benjamin Graham – American (British born)
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Guo Guangchang – Chinese
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Carl Icahn – American
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Rakesh Jhunjhunwala – Indian
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Suleyman Kerimov – Russian
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Peter Lynch – American
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John Templeton – British (American born)
What life lessons can we learn from the world’s most successful investors?
There is no better realization than waking up in the morning, pouring a cup of coffee, and checking how much your investments have grown while you slept. While passive income is the ultimate goal for many amateur investors, this isn’t what drives them. Check out some of the life lessons we have gathered from elite investors.
Love your work
Warren Buffet famously still gets up and continues to work for Berkshire Hathaway at the ripe age of 90. It is doubtful that he needs his modest $100,000 annual salary and could easily support many small nations with his dividends alone. If you love what you do, then you’ll never feel like you need to retire.
Don’t change your lifestyle
How many of your friends have got a raise and instantly gone out to buy a new car or upgraded their home? This is solely the wrong mentality to have if you want to be a successful investor.
Warren Buffet is infamous for living in the same Omaha, Nebraska home that he bought in 1958, and financially, this makes perfect sense. As you earn more, you should be investing more, not spending more. Take these wise words from Buffet to heart: “Do not save what is left after spending but spend what is left after saving.”
Think long term
As a teenager, it is almost unfathomable to imagine yourself as an older adult with wrinkles and tired knees. Saving for retirement can seem almost frivolous until you get excited by working the numbers and seeing the benefits of long-term investing. The vice-chairman of Berkshire Hathaway, Charlie Munger, succinctly stated that “the big money is not in the buying and selling but in the waiting.”
The world’s most successful investors didn’t make their fortunes overnight, nor do they worry at length about dips in the market. Peter Lynch is quoted as saying, “you get recession, you get stock market declines. If you don’t understand what's going to happen, then you are not ready, and you will not do well in the markets.”
Keep learning
The best investments of 20 years ago look far different from the biggest earners of today. Likewise, we are confident that in another twenty years’ time, companies will be developing products for a market that doesn’t even exist yet. While it is recommended to invest in what you know, you won’t be knowledgeable unless you keep learning. Compound your knowledge as you go through life.
Surround yourself with the right people
Choose to spend time with those that are inspiring and motivate you to strive for success. Your confidants can share in your accomplishments; however, as you become more prosperous, you will likely be asked to give loans for people with bad credit. You may be far from signing up for the Giving Pledge but focus on using your money for philanthropic causes that you find personally rewarding and motivating you to succeed.
Never in history have ordinary investors had access to as many opportunities as today. While the net worth of the super investors of the world is inspiring, it is their knowledge, perseverance, and skill that we can harness to be happy and successful.
