Timeless Lessons from the Investing Greats

December 13, 2022

We all have read inspiring life stories of investing giants like Warren Buffett, Peter Lynch, John Bogle and many more. They are listed among the most celebrated investors of all-time, and have made billions in returns through their investment strategy. I myself am particular to the insights and moves made by the Oracle of Omaha himself.

All these great investors differ in their investing strategies and philosophies; but if you take a closer look, there are definitely some commonalities and I would like to share them as below:

Investing is essential:

Often, people fear the volatility of the markets and use it as an “excuse” to not invest at all. In fact, avoiding investments to avoid risk will expose you to the greatest risk of not having enough for your financial needs in life – thanks to the unavoidable threat of “inflation”.

Knowledge is key:

Did you know that Warren Buffett is an avid reader who reportedly reads almost 500 to 600 pages every day? He once said, “Read 500 pages like this every day. That’s how knowledge works. It builds up, like compound interest.”

Fearful of being not “knowledgeable” enough? It is important to do the groundwork and plan carefully; it also helps if you have a trusted consultant to discuss with.

Time is your best friend:

Like saving, investing is a good financial habit best started as early as possible. Why? The power of compounding returns is best amplified with time. If you wait until you are more “settled down”, you may already have lost decades of investing potential.

Impulse is your worst enemy:

Behavioural biases and incessant noise around financial markets can easily distract and get in the way of better judgement. Hence, it is important to eliminate emotion when you are making investing decisions. Yes, indeed it would be easier said than actually done – but this is one of the crucial factors that impact your investing success.

Stay the course:

John Bogle frequently advised investors to stay the course even at the most challenging times. If you are able to overcome the distractions and noise, then you are likely to be able to sustain the core of every investment strategy – maintaining it for the long term.