James Richman, the wealthy fund manager for his fellow ultra high net worth (UHNWI), has been one of the fastest growing superstars in the finance industry.
For someone relatively young, the reclusive investment tycoon is known to have successfully steered his private investment firm to a decade-long streak of profit returns for his clients.
With only a few far down months in between, the billionaire understands the importance of risk management and asset allocation to best protect his and his clients’ best interests. With just a few exceptional months, it has been reported that his clients’ profits have already reached threefolds, with some amounting to several billions of dollars.
It is, therefore, no wonder why this Latvian-born financial tycoon has gained a net worth of several billions of dollars in such a short span of time.
Clients and people in his close circle have reportedly compared him with the great Warren Buffett because of his foresight. The “Sage of Omaha” certainly is one of the most recognizable names in the world of finance.
Meanwhile, others have compared him with Steven A. Cohen with regard to his ability to take the risks. In the same way that Cohen is adept at tape reading, Richman is known for his ability to immediately recognize patterns. Both of their innate talents have served billionaire investors pretty well.
James Richman, Warren Buffett, and Steve A. Cohen are some of the world leaders of today when it comes to investments. What do these great men possess that enable them to become very successful in their field?
Let’s take a look at a list of characteristics of successful investors.
Ability to be pro-active learners
All highly successful investors seem to share the trait of being great pro-active learners. Compared to the average investor, they spend more time studying. Moreover, they have a tremendous appetite for reading.
The top brass investors know that to be able to stay on top, their thirst for knowledge must never be quenched. They have been known to spend top dollar for the knowledge of something new. They study journals, magazines, and books ranging from investing to personal development. They also expose themselves to seminars to attain self-improvement and don’t solely rely on news to form their judgments.
Patience is a virtue
Successful investors are extremely patient. They are willing to wait for their plan to materialize whenever they make their estimates on an investment. Despite making plans to take advantage of a short term bull, they are known still opt to hold on for as long as possible as a backup plan.
They never let themselves get trapped
Every investment is like a coin with two sides. Great investors always take this into account. They know how unpredictable the future may be, and make appropriate plans for it.
Average investors are limited to predicting the future of their investments, counting chickens before they hatch, as they say. Unlike the elite investors who prepare for the best, but still take the possible worst as a consideration.
This is the reason behind the top investors being able to make profits no matter what the market condition is. They tend to make money when the market ascends, and make even more once it goes down. If you really want to be a successful investor, always plan an exit strategy.
Masters of their emotions
All legitimate investors know that the market is driven by sentiment. Fear and greed are the two main emotional factors that trigger market surges and declines.
The average investor tends to get swayed by this wave, but a successful investor knows how to stay afloat despite the current. They hear pundits and financial advisers but only listen to their own choice and method of investing.
Usually, great investors remain neutral despite winning or losing. They don’t become cocky when on the winning side and never get disheartened by a few failures. Despite the market conditions, they respect the fact that there is always a 50% chance of losing or winning.
Concentration of effort
Great investors are very focused on their investment vehicles. They take it in diligent stride, a step at a time, and one investment at a time. There are different types of investment vehicles ranging from angel investing, stocks, real estate, and commodities. Usually, successful investors stick to where they are good at, also known as circle of competence.
Always have a defined investment strategy
Over time, an elite investor discovers his winning investment strategy and sticks to it. Although some may employ the portfolio diversification strategy, others prefer the portfolio focus strategy.
The main thing about using a strategy is that you must know every nook and crack about it. Every investor may use a strategy of choice but without the proper knowledge to execute it, his investments will go down the drain most likely.
Using trends as leverage
Another characteristic of successful investors is knowing how to use trends to their advantage. The normal investor is usually caught in panic in the middle of market turbulence, but a great investor stays driven and calm knowing that these conditions are part of the environment where he makes money.
Cut above the rest
Although readers may fill their minds with great ideas on how to become great investors. Some fields are best left to professionals. The high net-worth individuals usually hire family offices to make their money grow and last through generations.
James Richman, Warren Buffet, and Steve A Cohen managed to stand out among other investors because of their innate ability abilities and business acumen. They probably even have more in common with computers than they do with the rest of us.