Whether you are a first time or seasoned investor, it is important that you have a continual desire to learn new investment tips and tricks. There are many people, organizations, and websites offering lessons and tips on investing, but the best advice you can get is from leading investors who have built impressive track records of success. Here are a number of investment tips from the top investors in the world.
Invest in Productive Assets
There are few people who have mastered the art of investing the way Warren Buffet has. The ultimate investment guru has this advice for anyone who is interested in investing: “always invest in productive assets”. While this advice is nothing new, it is one of the most important fundamentals of investing. Many investors allow their decisions to be influenced by sales pitches and marketing gimmicks. To be sure that your investment has the best chance of making money, you need to look at the product instead of the seller.
Be Tech Minded
Tech is the future of the world, and it should be one of your first considerations when you are deciding whether to invest in a company, according to successful entrepreneur Jason Sugarman. It is essential to pick a company that invests substantially in technology, so that your investment will not be at risk when a competitor adopts a new technology. Such a company is more likely to survive and succeed in the future.
Do Not Fall Into the Linear Thinking Trap
An example of linear thinking is expecting the market to perform equally well in the future if it is currently doing well. Many investors have the inclination to invest in the domestic market, which can be a mistake, according to DoubleLine Capital CEO, Jeffrey Gundlach. He encourages investors to consider expanding and diversifying into the global market.
Do Not Panic During Selloffs
It is quite common for selloffs to occur in the stock market. However, investors should not panic and join the frenzy when a selloff happens, advises Causeway Capital Management CEO Sarah Ketterer. Instead, you should buy stocks and shares with good potential. When the market recovers as it usually does, you will have more assets than those who joined the selloffs.
There is no sure way to avoid risk when you are investing. However, you can reduce your risk significantly if you know how to calculate your risk and make better informed decisions.