The 25 Habits of Highly Successful Investors

A Matter of Habit

Successful investing requires using a thoughtful process that should become habit-forming. When people develop a habit, they become consistent and comfortable engaging in a familiar activity with a pleasurable outcome. These habits are for long-term investing – usually five to seven years – that are designed to produce some cash, above-average appreciation and risk-averse growth, in alignment with the “value school” of investing. Value-school investors – following the principles of seminal investment expert Benjamin Graham – conduct a fundamental valuation of a business to compare its “intrinsic” value to its share price before they decide to invest.

Developing Your Own Style

Frame your investments in terms of your unique financial and emotional needs and goals, risk tolerance, budget, time frames and experience. Within this framework, you will develop skill with financial tools and analytics that can help shape your habits. Start with investment self-knowledge, which focuses on your goals and your level of tolerance for risk. To understand the difference between investing and trading, examine your life. Have you previously taken risks in ...