Speaking of Warren Buffett...
At our monthly get-together in Naperville last evening several comments were made concerning Warren Buffett, and most prominently mentioned was the fact that much of Buffett's success as an investor can be laid to the fact that he is very focused in the actions he takes investment-wise.
But I would submit that it goes even further than simply being focused, it also requires having a disciplined mind that causes Buffett to learn what he needs to know and then to follow through and take the kinds of action that are needed in order to bring about the desired results.
And yet I believe it goes even beyond being focused and being disciplined - it all has its beginnings by possessing a burning desire that will not allow anything to stand in the way of its attainment. And it is at this point that I believe most investors fall short of their investing goals.
Something else also stands out with regard to Warren Buffett, for he is more than merely an investor, he is also an entrepreneur - having transformed Berkshire Hathaway into a mercantile phenomenon. This in turn reveals an interesting parallel: that developing and building an investment portfolio has very much in common with developing and building a business.
This became readily apparent to me from reading a book by Fran Tarkenton, famed football player. The book is entitled: What Losing Taught Me About Winning. This book by the way, has nothing to do with football, but is all about building a business. And in the book, Tarkenton goes on to make several very valuable points that any investor would do well to heed. Among these:
* You have to be self-driven in order to go after whatever it is you want in life.
NOTE: this goes back to what we said about Warren Buffett being focused, having self-discipline, and possessing a burning desire to succeed.
* Money should not be your motivation. The journey is the thing. Climbing the mountain, not reaching the summit, is what you remember and enjoy. It should be the challenge, the competition, and the sense of enjoyment.
NOTE: As an investor, even though you may never find that elusive "10-bagger" that Peter Lynch talks about, you can still enjoy the challenge and the thrill of smaller victories as you improve your investing prowess.
* What stirs your competitive fires? What inner source can you tap into to help drive you and push you into doing what you have always wanted to do? What stokes your fires?... Find it and use it, whatever it might be. Look for those things that get you going.
NOTE: As an investor, you need to harness a desire that will propel you to success, and I can't think of a better one than the desire for Financial Freedom!
* Developing a sense of urgency about pursuing your dreams is vital. And you create that urgency by thinking about the frustrations and the limitations of working for someone else.
NOTE: Likewise as an investor, reaching the "Land of Critical Mass" in which you live off the passive income generated from your investments, and have no further need to work for a living, this is as the late Jackie Gleason would say, "How Sweet It Is!"
* If you are going to successfully start and operate a business, your mind, not your emotions, must rule and dictate actions. The small business entrepreneur has to focus on winning and attaining goals, so that when problems arise they are viewed as challenges to be savored and met rather than insurmountable obstacles.
NOTE: How true this is for investors as well. In order to succeed as an investor, we must eliminate emotions, and allow our minds to rule and dictate our actions.
One final suggestion: In order to succeed as an investor it is necessary to Think CIA: Use your curiousity to fire your imagination and propel you into action.
* * * * *
But I would submit that it goes even further than simply being focused, it also requires having a disciplined mind that causes Buffett to learn what he needs to know and then to follow through and take the kinds of action that are needed in order to bring about the desired results.
And yet I believe it goes even beyond being focused and being disciplined - it all has its beginnings by possessing a burning desire that will not allow anything to stand in the way of its attainment. And it is at this point that I believe most investors fall short of their investing goals.
Something else also stands out with regard to Warren Buffett, for he is more than merely an investor, he is also an entrepreneur - having transformed Berkshire Hathaway into a mercantile phenomenon. This in turn reveals an interesting parallel: that developing and building an investment portfolio has very much in common with developing and building a business.
This became readily apparent to me from reading a book by Fran Tarkenton, famed football player. The book is entitled: What Losing Taught Me About Winning. This book by the way, has nothing to do with football, but is all about building a business. And in the book, Tarkenton goes on to make several very valuable points that any investor would do well to heed. Among these:
* You have to be self-driven in order to go after whatever it is you want in life.
NOTE: this goes back to what we said about Warren Buffett being focused, having self-discipline, and possessing a burning desire to succeed.
* Money should not be your motivation. The journey is the thing. Climbing the mountain, not reaching the summit, is what you remember and enjoy. It should be the challenge, the competition, and the sense of enjoyment.
NOTE: As an investor, even though you may never find that elusive "10-bagger" that Peter Lynch talks about, you can still enjoy the challenge and the thrill of smaller victories as you improve your investing prowess.
* What stirs your competitive fires? What inner source can you tap into to help drive you and push you into doing what you have always wanted to do? What stokes your fires?... Find it and use it, whatever it might be. Look for those things that get you going.
NOTE: As an investor, you need to harness a desire that will propel you to success, and I can't think of a better one than the desire for Financial Freedom!
* Developing a sense of urgency about pursuing your dreams is vital. And you create that urgency by thinking about the frustrations and the limitations of working for someone else.
NOTE: Likewise as an investor, reaching the "Land of Critical Mass" in which you live off the passive income generated from your investments, and have no further need to work for a living, this is as the late Jackie Gleason would say, "How Sweet It Is!"
* If you are going to successfully start and operate a business, your mind, not your emotions, must rule and dictate actions. The small business entrepreneur has to focus on winning and attaining goals, so that when problems arise they are viewed as challenges to be savored and met rather than insurmountable obstacles.
NOTE: How true this is for investors as well. In order to succeed as an investor, we must eliminate emotions, and allow our minds to rule and dictate our actions.
One final suggestion: In order to succeed as an investor it is necessary to Think CIA: Use your curiousity to fire your imagination and propel you into action.
* * * * *
posted by Bob Moser at
10:13 PM
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