Jan 11, 2025  | Tags: investors, psychology

Our Insights 

When we think of successful investors, we inevitably think of Warren Buffett.

His net worth of more than $133 billion makes him the most successful investor of all time.

But aside from that $133 billion, what has Warren really got that you haven’t got?

Well he has an IQ of 150 for starters and not everyone can match that.

But there are a number of other traits that make Buffett and many other investors successful while others falter or fail.

When enough of these traits are combined and adhered to rigidly, you can’t help but make money!

Some are psychological, some financial and others practical.

Here are some of the best traits among successful investors and how you can join them.

Psychological traits

The three biggest psychological traits of successful investors are discipline, patience and resilience.

Discipline 

This means sticking to your investment strategy and not being spooked by market volatility, lured by greed or tempted by talk of a great opportunity you hear around the water cooler.

It also means strictly sticking to your investment contributions, rather than blowing it on a big night out. The best way to achieve this is by automating them from your bank account.

Patience 

Get rich quick schemes are a myth.  Wealth accumulation takes years, not weeks. Set long term goals and remind yourself that investing is a marathon, not a sprint.

Resilience 

Markets fluctuate and sometimes annual returns may even slide into the negative. But that is no time to bail out. Understand that there will be losses along the way but over enough time, your resilience will be rewarded.

Financial traits

Risk management and the determination to reinvest profits are the most critical financial traits to appreciate. An understanding of costs and meticulous record keeping are also important.

Unlike psychological traits, these are traits we can all develop and curate.

Risk management 

This begins with evaluating your risk tolerance level based on your financial goals and time horizons. It also involves diversifying your portfolio across different asset classes.

Reinvesting profits 

One of Buffett’s key pillars, reinvesting rather than spending profits accelerates growth using the same basic concept as compound interest.

Understand costs 

Appreciate that fees, transaction costs and taxes all eat into your profit margins.  Know where they exist and work to reduce or eliminate them where possible.

Record keeping 

Maintain accurate records of all your transactions. This is not just essential at tax time but allows you to study and learn from past decisions you have made.

Practical traits 

Like financial traits, practical traits are ones we can put into motion.

The most important ones are growing your knowledge base, being adaptable and seeking professional advice.

Grow your knowledge 

Knowledge is power so it makes sense to grow your knowledge base by reading reputable financial columns, magazines and books and subscribing with successful investors. When you understand more about investing, you will grow in confidence and have greater courage in your convictions.

Be adaptable 

Nothing stays the same and so it holds true when it comes to investing. That’s why it is important to be versatile by learning about technological developments and new opportunities.

Seek professional advice

Even with a multitude of enviable traits perfectly suited for successful investment, no-one should do without a professional ontheir team.

That’s why you should get in touch with Calder Wealth Management.

If you are missing one or more of the above traits,CWM can fill the void to ensure your investment portfolio puts you safely on the road to wealth accumulation.

CWM are financial planning experts who have been preparing comfortable retirements for generations of South Australians for more than half a century.

Our team of professionals will help set up you and your family for the rest of your life.

Alternatively, we can cast a second set of eyes over the investments you already have in place to ensure they remain aligned with your retirement goals.

There really is no substitute for quality financial advice from a team personally invested in your wealth accumulation.

At CWM, we pride ourselves on leading our clients into the future with structure, financial stability and confidence. 

Contact us today to discuss all of your financial needs and concerns.

Written by Liz Wilson

The information contained in this article is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.

Taxation, legal and other matters referred to on this website are of a general nature only and are based on Calder Wealth Management’s interpretation of laws existing at the time and should not be relied upon in place of appropriate professional advice. Those laws may change from time to time.

Calder specialises in wealth management with a focus on advice, investment, sustainability, insurance and finance.