How do you widen your investment skills? Investing is very much like a sport; the more you practice, the better you become.
Does talent help? To some extent, sure. Just like how some people have better psycho-motor skills, or how others are “good with numbers”, a little knack for something gives you an edge in a specific field.
But as Thomas Edison suggested, perspiration makes up 99%. That means the field is pretty much level for anyone keen to become a great investor.
Here are 5 ways you can improve your investment knowledge, no matter what your experience is … and no, you don’t really have to perspire. We promise 😉
1. Reading Books and Listening to Podcasts
More so than ever before, almost everything you could ever want to learn about any topic in the world can be found in books written by people who have been there and done that.
Whether you’re brand new to investing, or you’re a seasoned investor, you’d be spoilt for choice with the number of books already available to whet your appetite and up your game.
Here are some investment books we highly recommend –
- Five Rules For Successful Stock Investing (Pat Dorsey)
- One Up On Wall Street (Peter Lynch)
- Common Stocks and Uncommon Profits (Philip Fisher)
- 100 Baggers (Chris Mayer)
These books, along with many more, can serve as a solid foundation to your investment journey.
Read different books, ponder on the authors’ different takes and philosophies, as you craft and fine-tune your own investing style.
More of an auditory learner? Opt for audiobooks and podcasts instead. The results are equally beneficial.
2. Watch videos and interviews
There are tons of golden nuggets you can pick up by watching interviews of some of the top investors in the world.
Warren Buffett, for one, has been interviewed countless times for his investment advice. A quick search on YouTube will yield thousands of results.
For example, Warren Buffett revealed in his recent three-hour interview with CNBC that if he had to choose between buying long-term bonds or equities, he would “choose equities in a minute.”
Why did he say that? Why does he feel this way? How can you apply what he shared to your own investment decisions? These are the questions you might ask yourself as you watch such videos.
3. Read annual reports
We know, we know; a whole bunch of texts, graphs and numbers isn’t exactly the most riveting adventure story you’d be reading.
how to read an annual report and understanding
what it’s telling you puts you in good stead … leagues above amateurs who trade on gut feel.
From the tone of the chairperson’s statement, to the quick tells in the Profit & Loss, Balance Sheet and Cashflow statements, to the subtle indications in the notes, you can put together a pretty good story of how well a company is run and where it’s headed before you make any investment decisions.
Remember, the annual report is your friend … almost like a personal diary of the company.
Get good at reading it and you’d be safeguarding your investment pocket.
4. It’s who you spend time with
There are several iterations of the saying that goes along the lines of “Who you surround yourself with, you become.”
Very simply, you tend to rub off on the thoughts, energies and emotions of the people you spend the most time with.
Spend time with gossipers and negative people and before long, you’d feel pretty lousy yourself.
Hang out with basketball fanatics and soon you’ll be more familiar with basketball trivia than you’ve ever been.
Want to get good at investing? Network and mix with other serious investors. Pick their brains, learn from their mistakes, and get feedback on your own strategies.
You could even come across that one
investment idea that can dramatically improve your investment returns.
5. Attend an investment course
Last but definitely not least, what better way to accelerate your investment learning than to immerse yourself completely and make mistakes in a safe environment?
An investment course allows you such an opportunity to pick up the right investment framework, test what you’ve learned inside of a classroom setting where mistakes are “free” before you head out there for real.
A properly structured investment program would have distilled the mountains of information on how to invest profitably into a sensible, digestible course outline, so that its participants can acquire the skill sets to invest safely and confidently on their own.
Of course, you’d want to do some research and learn from a reputable organization that has successfully trained other investors before.
Even your learning is compounded
Every investor worth his/her salt knows that time
is one of the biggest factor working for or against you.
Just as compound interest works to grow your investment portfolio, your own investment knowledge gets better and better as you continue to learn and improve.
So always seek to improve your skills, stay grounded and maintain your focus to be a better investor today than you were yesterday.
That’s the best kind of investment that you can ever make for yourself!
Here at Value Investing College, our students have had phenomenal results
by applying the proven investment methodologies they have learned from our legendary workshop to multiply their cash and wealth.
If you’d like to join them and generate powerful returns, click on the button below to register for our complimentary