What Separates The Billionaires From The Millionaires?
At The Beginning of Their Careers, They Set Themselves Apart From The Crowd
When Businessweek came up with a list of the biggest brains in investing, we noticed how much each of them has influenced the way the world invests. And we noticed one other trait: Each saw opportunity well before the pack. John Templeton pushed international investing way before it was cool. Warren Buffett was buying up undervalued companies long before his brand of value investing became popular. Many of the world’s top investors got to the top by being first. They didn’t follow in the footsteps of others or copy wholesale the investing styles of others. They set themselves apart from the crowd. Standing out like that can require a lot of courage, especially on financial markets that, by their very nature, represent the epitome of the herd mentality.
Top investors “think for themselves”. They defy conventionalism. Perhaps this is why any list of the world’s top investors represents a vast array of political beliefs, personality quirks, and strange hobbies. While some keep a low profile, people like Buffett and bond king Bill Gross seem to love regaling others with their views. Another common trait: Most of the top investors, though not all, think long term. They have a confident belief in what their investments ought to be worth at some point in the future, and they stick with it. A long-term focus is crucial when you’re being judged on your record of not just a few months or years, but decades. The top investors usually stay active for several decades, at least. They have been survivors of every type of economy cycle. They’ve survived economic chaos, war, and volatility. True, not all the top investors make money by buying and holding investments. Some, like currency speculator George Soros, profit on the perfectly timed trade. But that requires being an independent thinker, too. Soros must understand conventional wisdom, but he is also willing to challenge it. He has bet billions by going against nations’ central banks.
One thing doesn’t change, however: It helps to be lucky. Even the best of the best can provide a long list of investing mistakes. Sometimes even the best investors wish they could turn back the clock and undo a big blunder. But the brightest minds in investing are nothing if not adaptable, and can even use those missteps to fine-tune their future strategies. While ordinary investors may not be able to match their results, they could certainly profit by taking a page or two from the methods and approaches employed by our brain trust.
