Ever look at a successful person and wonder, “How do they do it? What’s their secret?” I know I have – especially when it comes to other investors. While I’ve found success on my own, I’ve also spent a lot of time studying what others are doing that enables them to meet their goals – and I’ve used that knowledge to help propel me forward. Today I want to share what I’ve learned with you. Here are 9 of the common traits that I see in the most successful investors I know.
- They set goals. What are you working toward? If you don’t know, then you’re in trouble. Every successful person out there, whether they’re an investor or not, has established goals and expectations for themselves. They know what they want, and they figure out how they’re going to get it. The catch? These goals have to be realistic, measurable, and achievable.
- They learn. A great investor is one who is always learning. They’re always on a quest for knowledge, and they get it from multiple sources. This could mean reading online blogs like this one, attending seminars, talking to other investors, or even reading books that have nothing to do with real estate. The point is, they’re exercising their brains and honing their critical thinking skills, and this directly translates to success.
- They know when to say no. It’s really hard for some people to say “no,” and these are the ones who will struggle. But the most successful investors have that word deeply ingrained in their vocabularies, and they aren’t afraid to use it – even if it means making others upset. They know what is right for them and what’s not, and they don’t agree to things that are too risky.
- They take risks. They may know when to say no, but successful people aren’t afraid of a little risk, either. With no risk, there’s no reward. They understand the balance between the two, and while they’re not averse to a bit of risk, they’re also smart about it. Their risks are calculated and well thought out, so the chance of negative surprises later on are lessened.
- They work within a team. Teamwork makes the dreamwork, people. Successful people understand this, and they recognize the value in working with others. Different people have different strengths, and tapping into these and working them to your advantage – always being fair and honest, of course – is how you succeed.
- They listen. Everyone loves a great listener, and you’ll find that most of these folks are also pretty successful. Why? Because they’ve discovered something that most people miss out on because they’re too busy talking! Listening pays off, and when you learn how to do it well (i.e., truly understand what’s being said, connect with others, communicate effectively), you’ll have an advantage over the competition.
- They diversify. There’s value in diversity, and making sure that your assets are diverse will only help you move forward. When you look at your overall investment portfolio, you should see different asset classes, like stocks, bonds, and real estate, as well as diversity within those classes. For instance, with real estate, this may mean owning a few different types, or investing in different markets or even using different strategies for different investments. This helps reduce your risk and insulate you from market fluctuations.
- They learn from their mistakes. Screwing up isn’t any fun, but it happens to all of us, even highly successful people. What sets these guys and gals apart, though, is that they use their mistakes to move forward. They don’t dwell on them and allow those errors to completely throw them off track; instead, they examine them, realize what they did wrong, and then work to ensure it doesn’t happen again.
They understand the value of “me” time. There’s no shame in taking time for yourself. Everyone needs a chance to recharge, and it’s good for your physical and mental health, too. Successful people, while normally very busy people, also recognize the benefits in taking time away from the grind. Whether it’s in the form of a full-on vacation or even just time off periodically where you do something you love, you’ve got to add some “me” time into your schedule.