From the course: Developing Investment Acumen

Get an investment mind-set

From the course: Developing Investment Acumen

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Get an investment mind-set

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- The most famous investor in the world, Warren Buffet, is very public about how he develops his investment acumen. He reads for six hours a day. Buffets been investing at the top of his game for over 60 years and yet he still acknowledges that constant learning is the key to his success. Now, we may not all have that sort of time, so it's important to ask yourself this question: What does developing investment acumen mean to you? It may mean that you want to understand more of the lingo or to read your retirement account statements without getting a headache. Or, to be able to make decisions that you're comfortable with. Or, even just challenge your know it all neighbor and their sure-thing stock tips. All of these are outcomes of developing your investment acumen. But, your life-long goals should remain intact. Number one, practice healthy habits. Spend less than you earn. Stay away from high-interest debt like credit cards and save and grow the money you have. This is true for people just starting out at the low end of the income scale as well as those at the apex of their earning years. Number two, build a system that works for you. It may be a combination of online tools plus occasional advice. It could be joining an investment club. Or, it could be outsourcing everything. But, managing your managers. And three, learn the rhythm of money. There always be good years and bad years. And the more you know the better you're able to take advantage of market changes. Investing is a lifelong journey. If acumen is something still being built by an 88 year old with 19 billion dollars, then it's certainly something that we all need to work on overtime. But, it doesn't have to be work. There are opportunities everyday to build your investment acumen by adopting an investment mindset. Which inherently is curiosity. How does money flow through the economy? Who are the current winners and what sectors seem to be lagging? It doesn't sound like fun dinner party conversation, but it can be. Also, if you're apart of a family or a couple, make developing your investment acumen a shared goal. Watch videos together, bring conversations around the topics that can help you advance your goals or ideas. So, as a to-do, I want you to answer this question: it's 11 a.m. on a Tuesday, you're 72 years old, what are you doing? Know this, there is no silver bullet. No one book or course that will magically develop your investment acumen or change your behavior. Make a commitment to develop your investment acumen today and for life.

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