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Investing is 10% math and 90% temperament.
Most investors spend all their time looking at spreadsheets and financial statements.
They forget that their greatest asset isn’t their capital, it’s their mindset.
Jason Zweig shared “The 7 Virtues of Great Investors” in the latest edition of The Intelligent Investor.
Here is how you can use them to build long-term wealth.
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1. Curiosity
Great investors are learning machines.
They don’t just look at a dividend yield, they look at the business model.
They ask why a company is able to pay a dividend for 50 years straight.
The more you learn, the more you earn.
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2. Skepticism
If a stock offers a 15% dividend yield, be defensive.
In investing, if it looks too good to be true, it usually is.
Skepticism protects your principal from permanent loss.
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3. Independence
If you do what everyone else does, you’ll get the same results as everyone else.
It’s easy to get swept up in momentum and excitement when it looks like everyone else is making easy money.
As a dividend growth investor, you’ll be buying boring companies while others are chasing bubbles.
But in the long run, it’s a great strategy to build wealth.
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4. Humility
You can’t control everything.
There’s an element of luck in every investment.
Humility means admitting you might be wrong, and that things are uncertain.
Great investors recognize this and do things like diversify and buy with a margin of safety to protect themselves.
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