If you want to be successful in investing in the stock markets or any other field, the first and most important preparation you can do is to prepare your mind.
The mind has a powerful way of attracting things that are in harmony with it, good and bad.Idowu Koyenikan
Therefore the mindset needs to be just right for investing as well so that you attract all that’s good and stay away from the bad.
Who to learn from?
Now, the question comes who do you learn from about all the psychological aspects of investing? The answer to this is simple – learn from the best in the business. So, unarguably the greatest investor of all time is Warren Buffett and that’s who you should learn from. That’s how it’s done, Think like greats to become great and I don’t think you wish to be anything less.
Look inside the mind of Warren Buffett
Warren Buffett has been so successful that so many people have tried to understand how he thinks, many have interviewed him, many have also written and read books about him. There is so much stuff to read about him on the internet that you might get overwhelmed and not get the essence of his thinking.
So, I suggest you watch this elegant documentary by HBO first, before reading about him because video helps to understand the bulk of ideas quickly and in brief. It is approximately 1.5 hrs long but I assure you, it provides priceless insight into his life.
Now, that you have watched this documentary and have an idea about his way of life and thinking, you can go about reading books about him. I would suggest starting off with The Snowball, which is the first biography of the GOAT of Investing.
Develop Your Own Mindset
According to Wikipedia, mindset is a set of assumptions, methods, or notations held by one or more people or groups of people and it can also be seen as an incident of a person’s world view or philosophy of life.
Therefore it is not something that can be developed just by reading something or watching a few videos. Here are a few tips to help you develop your own mindset:
- Find a Mentor and learn from him.
- Learn & Apply. Without application, you might know what to do but come the time we do not act accordingly.
- You need to be open and receptive to different views.
- It is said ‘People should surround themselves with people that match their desired mindset’. Find such people.
- If it gets difficult to find people with a similar desired mindset so read books of such people. By doing so, you remain motivated and their right-thinking gets imprinted in yours too.
Benjamin Graham’s rules from The Intelligent Investor
Benjamin Graham played a mentor’s role in shaping Buffett’s career and investment philosophy. Warren Buffett learnt from Graham so I would suggest you do the same!
So here are the core principles as written in The Intelligent Investor (Considered as the best book written on investing by Warren Buffett):
I suggest you read it at least twice if you are serious about getting better at investing. Now you have a SOLID platform for your own mindset.
Developing a strong investing mindset is a journey, not a destination. I could have given a few rules that you need to abide by to be a successful investor like everybody else, but I did not. The reason is, if you just read the rules, you might get to know what’s right but you don’t actually start believing it.
I have given you the exact path any great has followed to learn from other people and then have a sound, unique mindset which they firmly believe in. This will only happen if you put in the work.
And now, that you have read this post completely you can start off your own journey!
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