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Top Investing Secrets of Legendary Investors in The World

To be successful and own a huge amount of wealth, not only need a clear mindset,  investors also need a smart strategy.

World-renowned investors have achieved great success.  They are always different, innovative and have a clear career path.

So what exclusive secrets do they have for many new investors to learn and apply in 2023? Below are Top Investing Secrets of Legendary Investors in The World.

1- Value Investing

Legendary American investor has many outstanding achievements as an investment manager and financial educator.  Benjamin has written two investment books worth a thousand years, including "Security Analysis" and "The Intelligent Investor".  He is also the teacher of many investment legends such as Warren Buffett, William J. Ruane or Irving Kahn.

Top Investing Secrets of Legendary Investors in The World

Benjamin Graham is the one who born the term “value investing”.  This is the concept that explains that people should invest in stocks that are undervalued.  If the stock is recognized for its full value, people can optimize profits.

Besides, Benjamin also always evaluates the market thoroughly.  He will decide to invest only when he is sure that the value of the company is higher than the cost.  Particularly, he will sell if the company has reached the price that he thinks is reasonable.  These are the two golden rules, although they have been around for a long time, they have never been wrong.

2- Invest in The Best Business

According to American investor Bill Gross, who is world-famous and known as the "King of bonds" because of his successful fixed-income investments.  He is also the co-founder of Pacific Investment Management Company (PIMCO), “One of the most important financial decisions is finding the best person or best organization to invest your money.”

He also advised that investors should not pour money into "zombie companies".  These are companies that are at least 10 years old and whose interest payments on loans exceed earnings before interest and taxes.  That is, it needs to be continuously financed to maintain operations.  Instead, investors should pour money into the real economy with companies that are financially and ethically sound.

3- Comply with Safe Investment Limits 

Warren Buffett is one of the most successful investors in history His net worth of $100.6 billion (2021) comes mainly from stocks and the company Berkshire Hathaway. 

Buffett always maintains the faith and follows the discipline that he sets out.  He advises investors to understand the business they want to "put their money in" and only buy stocks that people are willing to hold.

He also said that people should prioritize businesses with a high competitive advantage - companies with quality products and well-developed.  Finally, complying with safe investment limits When planning your investments, make sure you keep an emergency fund at all times.  Particularly, when choosing an investment portfolio, do not be too focused on stocks and bonds with too high returns because it may bring unexpected risks.

4- Invest as Soon as Possible 

John C. Bogle is one of the most prominent investors in the world He is the founder of Vanguard Group - one of the largest investment funds in the world which managing about 7 trillion USD (2021).

Top Investing Secrets of Legendary Investors in The World

In his career journey, Jack Bogle gives 3 valuable lessons for those who are new to investing.  Firstly, "investing is a good habit, everyone should invest as soon as possible".  Don't leave money in one place, make it profitable.  Even a small investment can skyrocket, never stop investing.

Secondly, “simplify investment, cut costs".  He advises people to follow the formula: "net return = gross return - taxes and fees".  To limit costs and taxes, he encourages people to invest in index funds because the costs of management, trading and taxes of these funds will usually be lower.

Finally, "don't be impulsive".  Let go of emotions when pouring money, set reasonable profit targets and stand your ground.  Everyone should make the first decision based on the market reality and the situation of the people around.  Personal feelings should not be dominated.

5- Diversify Investment Portfolio

Peter Lynch is one of the greatest and most successful investors of all time He is a former manager of the Magellan Foundation.  At the age of 33, Peter Lynch took over and ran the fund for 13 years, until retiring at age 46. He has also co-authored numerous books on modern personal investment strategies in particular and investment research in general.

In his investment journey, he once advised people: “Investment acumen cannot be learned from Wall Street experts.  It's something that's available to everyone."  People need to “invest in what they understand.”

Besides, the legendary Peter Lynch also offers a set of 4 principles that are proven to work.  Firstly, “knowledge is power”. 

When investing by buying shares of a company, do people understand how that company does business?  How does the company make money, does it have a competitive advantage in the industry?

Secondly, "don't let emotions rule".  Human emotions make life more marvellous but are detrimental to investment.  Emotions make people think short-term, have unrealistic expectations of profits both now and in the future.  This can lead to common investment mistakes such as: rushing to sell stocks when the investment is underperforming or spending time waiting for a commensurate loss.

Thirdly, “must diversify the investment  portfolio”.  Investment is always risky, portfolio diversification is a condition for balance.  The principle is "don't put your eggs in one basket", that is, don't pour money into similar investments too much.

Fourthly, “buy low, sell high”.  According to Peter Lynch, when the stock market goes down, if you buy investment funds wisely, at some point in the future, you get a surprise. 

Above are The Top Investing Secrets of Legendary Investors in The World for new investors in 2023 to apply.

 

Top Investing Secrets of Legendary Investors in The World


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