How can you become a great investor?
Warren Buffett had an answer. Back in 2000, the Oracle of Omaha spoke to a group of MBA students and revealed what it takes to prepare for an investing career. Interestingly, what the effort required is well within the reach of every one of us.
But not all of us will be willing to do it, he mused. In his own words, Buffett said:
“Read 500 pages like this every day,”
“That’s how knowledge works. It builds up, like compound interest. All of you can do it, but I guarantee not many of you will do it.”
Earnings season may be over but the work involved in finding great companies to invest in continues in the background.
It’s better this way.
As the dust settles, you can take your time to study companies without feeling rushed into making any decisions.
And as you spend time catching up on the latest developments, you will be undisturbed by the din of the financial media touting or the thrashing of a company’s quarterly earnings.
A peaceful mind is important, especially when there are opportunities coming thick and fast.
After all, not every stock is worthy of your portfolio. You have to keep your wits about you if you want to choose the right stock for yourself.
To that end, Chin Hui Leong shared a key question that investors have to answer before adding any new stock to their portfolio.
Meanwhile, Chong Ser Jing answered a key question about Mapletree North Asia Commercial Trust (SGX: RW0U), a REIT that has been beaten down due to the damage to its key Hong Kong mall.
He urged investors to think beyond the single REIT, and take a broader view of portfolio risk.
When you buy a stock, you wouldn’t know ahead of time whether the investment will work out.
As such, it is always good to take a refreshed look at your own portfolio from time to time to figure out whether the stocks you own deserve to be there.
Royston Yang shared four desirable characteristics for stocks that are worthy of your portfolio.
Thank you for staying with us on our early journey to smarter investing. Stick around for the ride, it’s gonna be a long — but fulfilling one.
None of the information in this article can be constituted as financial, investment, or other professional advice. It is only intended to provide education. Speak with a professional before making important decisions about your money, your professional life, or even your personal life. Please refer to the individual articles for stock ownership disclosures.