Behaviours of Highly Successful Investors

If you want to be successful, then learn to be a student of success, says Wilhelm Lilliehook. Making it big in the investment world goes beyond having the right strategies, being financially literate or knowing how to wiggle the market. Look at the life of the most successful investors of all time, and you will find that they have developed certain behavioural habits that have contributed significantly to their success. This has helped them to make a fortune off their success and they are teaching millions of others to achieve great returns as well. 

These investors might differ in the strategies and philosophies that they applied to train, with some even choosing to invest $1000. However, these behaviours are common among them and they have been constantly beating the market no matter the instability. If these have been serving others, then it is vital to study these behaviours and how others can incorporate them. After many years of helping clients in building and maintaining wealth through investing, Wilhelm Lilliehook has discovered these investors’ behaviours that can be employed to achieve investment goals. 

They Spend Within Budget

Yes, successful Investors have enough wealth for a flamboyant lifestyle, yet they never spend outside their budgets. They are frugal and would rather save instead of involving in wasteful expenses. They understand that frugality is crucial to achieving financial success. 

What does this mean: Even if there are enough funds, the real sense is to be disciplined, regardless of all the shiny things that might be vying for your attention. 

They Save Aggressively

Let’s be real, saving money can be hard. And even harder when the few dollars you save here and there is taking forever to reach your financial goals. However, this is an art successful investors have mastered. They are well-prepared for emergencies, and they understand the importance of insurance for wealth protection. 

What does this mean: save aggressively and be disciplined with it. First, get rid of all debts and have a plan for saving. When you save, you are paying yourself first. 

They Invest Regularly

Now, the goal is not to make your money rot on the savings account, the goal is to invest, Wilhelm Lilliehook advises. Successful investors make their work for them. Whether it’s stocks, bonds or mutual funds, they research and analyse their investment options in order to make informed decisions. They approach the market positively and always look at the potential for long-term growth. 

What does this mean: be optimistic towards investment and be ready to take risks and well as manage them. Know your risk tolerance, understand your investment goals and carve out investment strategies that will make you reach them. 

They Diversify

There is no successful investor that doesn’t diversify, Wilhelm Lilliehook says. They understand that diversification is the key to successful investments. By diversifying, they face a lower risk of any of the assets underperforming and protect against market volatility. 

What does this mean: there is no 100 per cent guarantee that any asset is the best. What seems to be performing well today can go otherwise tomorrow. That is why investors need to diversify. To diversify, blend dissimilar assets together, across various sectors so that the portfolio is not exposed to one individual asset class or sector. 

They Stick With their Plans

You aren’t just saving up only to make rash investment decisions that bring no result.  And having an investment plan is not just choosing a few stocks to put money into. Successful investors know where they want their money to work for them, their risk tolerance, time horizon and where to invest to make things happen. They have defined financial goals, and create plans to achieve them. 

What does this mean: there should be a plan about where you want to invest your money and devote time to study them. For this, understand your current financial situation, have defined financial goals, and then, develop investment strategies to achieve those goals. 

They Know When to go for Plan “B”

There will sometimes be unforeseen circumstances and knowing how to navigate through is vital for success. Hence, successful investors understand when a strategy isn’t working and have another one handy to help out. Market conditions, ideas, and outcomes can fail, and plan B is the damage control when the previous plan seems not to be working. 

What does this mean: having a plan B doesn’t mean you are uncertain or underconfident of your previous approach, it is a way of having a realistic approach to help the current circumstances and ensure the original plan at all costs. Therefore, have an alternate plan to avoid setbacks or get you back on track when something unexpected happens. 

They Never Stop Learning

Successful investors are leaders in the game yet they are still students. This is to say they never stop learning. They keep abreast of financial trends and stay updated on events. They analyse and understand how it can affect their investments. 

What does this mean: never stop learning! Whether it’s trends, market analysis, various investment vehicles, or micro and macro environmental changes, analyse this information and its effects. 

Bottomline

Successful investors have already walked the walk and they understand how to navigate the market. One thing however stands out for their success, they have the right behaviour. Knowing these behaviours and incorporating them will allow you to navigate the market with confidence and invest successfully.