Investing in a financial market (stock market, funds, indexes, penny stocks, etc.) of any kind can be scary. There are many numbers, graphs and stats to consider that for a layperson, this all becomes intimidating very quickly. The important thing is not to rush into anything and to first beef up on theory. A big part of it should be finding out and analyzing what the best investors have done in the past and how you might emulate them.
Warren Buffet is probably the most famous investor of all time, at least among people who are not investors themselves. His philanthropy and his unassuming way of life have made him somewhat of a celebrity. On top of all that, his earnings overshadow every other investor. So, what can new investors learn from Buffett? Well, for one, you can learn that you should only invest in what you understand. If the industry is a mystery to you, stay away from it. You can also learn that it often pays off to be patient and wait things out.
Benjamin Graham is the man who taught Warren Buffet everything he knows, or at least a great deal of it. As you might imagine, he was one of the most successful investors himself, also playing a crucial role in the creation of the Securities Act of 1933 which pretty much determined what stock market will look like in years to come. His lesson is one of being conservative and not gambling on something you cannot afford. He was also a master at using financial analysis in his investing. His book, The Intelligent Investor is still considered to be a must-read for anyone looking to invest.
Peter Lynch is famous for managing one of the most successful funds in investment history, Fidelity Magellan Fund and managing it like a boss. He managed to beat the S&P500 Index in eleven out of 13 years and had average annual returns of almost 30%. If you want to learn from Mr. Lynch, then learn this – always know why you are buying. Do not buy on a hunch or because you might have a feeling it will work out. He has also always emphasized the importance of good management, meaning you should only buy stocks of those companies whose leadership you trust.
First of all, Timothy Sykes is probably not on the same level as the other investors on the list, but he is a great representative of new-school investing, also investing in a market where the Old Guard would never dream to invest – the penny stock market. When it comes to learning from Tim, the main lesson is that it sometimes pays off to venture in a market that is not that popular. When doing this, it is essential to work hard and to really apply yourself. If you want to learn more from him, there is plenty information here.
Ask anyone who isn’t on Wall Street who Michael Steinhardt is and they will stare blankly at you. Ask anyone on Wall Street and they will tell you that he is one of the most successful investors of all time, breaking all kinds of records and making enormous amounts of money. Michael always emphasizes that
early mistakes are important and that it is best to make them as early as possible. He can also teach you that you will never have ALL the information and that sometimes you need to follow your intuition.
And there you have them, some of the best investors ever and some of the best lessons that you can learn from them.
Hope these help!
James D. Burbank has spent more than ten years in the trade show industry, traveling around the world and experiencing business “on the ground”. He is currently investing in the stock market and trying to get his blog, BizzMarkBlog off the ground.