What Makes A Great Investor?

Average players want to be left alone. Good players want to be coached. Great players want to be told the truth. – Doc Rivers.

Now I am not a fan of the NBA. But this quote by coach Doc Rivers struck me. What a message. This really can relate to investors as well as, many of life’s endeavors. The average want to be left alone because they fear the unknown. They fear loss, being taken advantage of and they have ‘too much to lose’.

The average seek answers to unanswerable questions. What is the best investment? Where is the best place to put my money? Will I have enough money to retire on? Will I outlive my savings?

Good investors want advice. They want to be coached. Unfortunately, the Wall Street bullies have convinced the good investors that predicting the future is right. They have been convinced that someone can get them into and out of the equity markets at the right time. They have been led to believe that someone can pick the right stocks.

Their goal is to earn stock market returns with treasury bill risk. What they get is Treasury bill returns with stock market risk.

Great investors have open minds. They seek the truth, not the propaganda the financial media spews, each and every day. They understand that Wall Street might not have their best interest in mind.

They believe that investing is a long term process. They believe that market timing, stock picking and track record investing do not work.

These great investors seek the truth. This includes Nobel Prize winning research such as, Modern Portfolio Theory and Efficient Market Hypothesis. It also includes the three-factor analysis.

Great investors not only seek coaches they also seek the truth.

Work with a fiduciary adviser/investor coach to become ‘great’.

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