Investing as a career III

Is investing a career of choice specifically for a genius with high IQ? Not at all! A genius with high IQ not necessary guarantee a success in his investment. Everybody knows Sir Isaac Newton? We all read about his discovery of three laws of motion in our physics textbook during our secondary school days. Undeniable he is a genius. But, he could not resist to the madness of the crowd and invest his money in South Sea, which later on proved it was just an another bubble. He lost a lot and explaining later, “I can calculate the movement of the stars, but not the madness of men.”

A teacher, mechanic, technician, farmer…etc, no matter what’s your current career, you have a chance of beating down those so called professionals in Wall Street, provided you posses two crucial factors: Firm Character and Knowledge. The sequence of two do matter, where without first, second factor will only do harm to you in your investment.


Firm character is a crucial factor with paramount importance in order to succeed in the investment. The character needs you to stay outside from the crowd with a independence and critical thinking. Though, you opinion might against conventional wisdom and you might be tagged with “Stubborn”, this is a first step to ensure your investment success. The judgment you make is based on “Right because of FACTS, not because of popularity.”

Knowledge could be gained through many sources and experiences. Take an example, though analyzing a bookkeeping of a company is a must before we invest, at the same time, we could gain a lot of useful information when we shop. Whenever you shop, we will notice some brands might be selling fast while the others might be not. From there, it gives you some ideas what’s going on in the field. How about the transaction made day by day? Are they still using cash or credit / charge cards become prevailing? Do people stop consuming poultry products in the long run because of bird flu scare? Through observation and on field knowledge, it gives you a valuable info for your investment judgment.

All in all, investment is a game of Substance over Form. Only people who make an investment based on this could succeed. Since when you see Warren Buffett needs to have luxurious paintings on his office wall to show he is the greatest investor in the world? Or, does he need an assurance from others to have an office located in a downtown Manhattan and run by thousand of staffs?