It is a well-known fact among investors that in the long term, markets always go up.
However, only a few investors are able to take advantage of this. We will present the best investment gurus who have succeeded many times in the financial markets. We will introduce you to their mindset, investment strategies and the secrets of their success.
The S&P 500 has grown an average of 11% per year over the last 60 years. In the years 1950-1970, the average increase was 12.1% per year, and from 1983 to 2003 even 13% per year. That's a pretty solid score, isn't it? It is enough for investors to wait for a short-term decline in this index, buy the appropriate ETF, so that in a few years they do not have to worry about retirement.
The reality is unfortunately different. The market usually outsmarts individual investors for many reasons. They often buy when the price is high and sell when it falls. Unsuccessful traders also close their profitable positions prematurely, while unprofitable positions hold for too long. There is an apt English saying to describe this situation: "Eat like a bird and poop like an elephant."
Intelligent investor Benjamin Graham
Benjamin Graham is considered the father of value investing, which is based on a thorough analysis of the companies in which he decided to invest.
The rather simple strategy of this smart investor turned out to be extremely effective. At one time, his method was able to generate average profits of up to 20% per year. Graham's approach to investing has found many imitators, including Warren Buffett himself.
Although it will soon be 100 years since Benjamin Graham's strategy made him immensely wealthy, his investment practices can still be successfully applied today, and we'll show you how.
But first, let's review the significant events in Graham's life that shaped his investment philosophy and strategy.
Warren Buffett
Warren Buffett is one of the six richest people in the world. And although his fortune is estimated at over $ 82 billion, Buffet himself leads a relatively modest life, which is far from the extravagant lifestyle of many millionaires and billionaires.
It is in vain to look for sumptuous villas, luxury yachts or jet planes. Warren Buffett is still satisfied with the house he bought more than 50 years ago for $31,500.
Warren Buffett's investment strategies have helped him achieve an average appreciation of 24% over a 32-year period. This is why this walking Oracle of Omaha is rightfully considered the most successful investor of the 20th century.
Before we get to know his business philosophy and the secret of his investment success, let's first look at some events in his life that prove that he was a born businessman from an early age.
Martin Edward Zweig
Martin Zweig began his investor career at the age of 13 when his uncle gave him 6 shares of General Motors. Thanks to his intelligence and hard work, Zweig became one of the recognized figures on Wall Street. Unlike Benjamin Graham and Warren Buffett, who are known for their lavish lifestyles, Zweig was not shy about using his success and wealth.
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