May 31, 2009

The necessary ability for investment

I think that there are four abilities to succeed in investment. Two already talked.
  • Continue having the same passion, spirit and motivation.
  • Appropriate distance from the money.
The other two are in "The Intelligent Investor (by Benjamin Graham)". Please read the preface written by Warren Buffett.
"To invest successfully over a lifetime does not require a stratospheric IQ, unusual business insights, or inside information. What's needed is a sound intellectual framework for making decisions and the ability to keep emotions from corroding that framework."
The third and the fourth are these.
  • Sound intellectual framework for making decisions.
  • Ability to keep emotions from corroding that framework.
If we were to get these four abilities, we could earn money enough, even if we don't depend on equity investment. I wrote "The necessary ability for investment" as a title, but in fact, it may be "The necessary ability to succeed in our life".

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