What are the traits of a successful investor?
Investors need to have emotional discipline to succeed. In essence, what is value investing all about? While there is no denying that a number of different methods have delivered great results, what really distinguishes successful value investors are three basic requirements.
October 25, 2011 / 14:05 IST
By Sanjoy Bhattacharyya/ Forbes India
Investors need to have emotional discipline to succeed.In essence, what is value investing all about? While there is no denying that a number of different methods have delivered great results, what really distinguishes successful value investors are three basic requirements. First is the need to exercise emotional discipline. Second is the need for a robust and consistent framework for arriving at investment decisions. Finally, the ability to develop rational and detailed insights about how a business prospers and fails while thinking independently is vital. Much has been written about the second and third aspects, yet somehow the first idea has received scant attention. What follows is a brief attempt to explore how an investor can systematically inculcate emotional discipline.The vast majority of individuals are driven by fear, greed and a deep-rooted gambling instinct. We often believe what suits us and disregard what the facts dictate. Typically, this habit is driven either by over-confidence or self-denial. Unwittingly, the Internet often fuels this danger of over-confidence by creating an
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