What do Robert Kiyosaki and Warren Buffett have in common? Well, in addition to having millions of dollars in their bank accounts, a large part of their business empire is thanks to real estate investment.
Investors like them did not become rich in a day. But they had to live the ups and downs of the financial markets and work their individual personality as an investor.
Learning from them and other great economists, we have brought you this article, where we will guide you through 3 essential principles to begin to become an expert investor (and not lose money).
LEARN ABOUT THE MARKET
Warren Buffet explains us with not only 1, but 2 of his most famous quotes:
“Never invest in a business you can not understand.”
Study and research to make smart decisions.
“Risk comes from not knowing what you’re doing.”
Take a calculated risk.
Another reference would be Neil Shen, one of the most successful investors of 2018 according to the Midas List of Forbes magazine, whose investment style is summarized in this famous phrase: “you have to completely change your way of thinking when you are an adventurous investor”, and It has served you well.
To do this, there are many texts that you can read like Real Estate Finance and Investments by William Brueggeman and Jeffrey Fisher that explain high-level financial real estate investments in a way that is easy to understand if you are a beginner.
Learning to be a successful investor is a constant learning process, and the process takes patience.
Taking investment courses, reading books on modern financial ideas, investigating cases of failure and success, finding a mentor or consulting real estate experts are some things you can learn to invest in that market.
Once you know how the market works, you can apply your rules.
CREATE YOUR INVESTMENT STRATEGY
No one knows your financial position better than you. Therefore, you must trust that you are the most qualified person to make your investment; all you need is little extra help. Identify your weak and strong points that will help you or prevent you from successfully investing in and managing the investment correctly.
A beneficial test that helps investors understand their profiles was developed by the CMF or Commission for the Financial Marke, we suggest you take it CLICK HERE. [If you are a Spanish speaker, click CLICK HERE to take the test].
Usually, the best investment results come from a person analytical behavior and have an eye for numbers.
However, if the test determines that your personality traits are highly adventurous, you can still achieve investment success if you adjust your strategy according to your personality traits.
In other words, regardless of the group you are in, you must manage your core resources in an orderly and disciplined manner.
You might also be interested: You have 200K and you’d like to invest? Continue reading to find where to get the best ROI in Panama
START TO INVEST
“The winners are not afraid of losing. Losers yes. Failure is part of the success process. People who avoid failure avoid success. “- Robert Kiyosaki.
Maybe it sounds obvious, but one of the fundamental principles of investments is precisely to INVEST.
A successful investment is not a one-off, isolated event, but rather an adventure for which you will have to prepare as if you were going on a long journey. And it’s better to start that trip NOW.
To do this, start by defining your SMART objectives (specific, measurable, achievable, realistic, on time) and then plan – and execute – your investment “journey” accordingly.
For example, if you want to retire when you turn 50 in 20 years, how much money will you need to do this? First, you must ask yourself these questions. Your plan will depend on it.
# 1 Beware of false friends who only appear to be on your side to get the most benefit from you, as well as from people whose investment ethics and interests would conflict with theirs.
Remember that, as an investor, you compete with large banks that have much more resources and easy access to information and power.
# 2 Diversity is the key. Avoid investing your resources in a single project for a long time. Continue to grow and increase your passive sources of income.
Always keep listening and learning from the lessons of the investment process and when you reach the desired goal, open a bottle of champagne and celebrate big.
FREE Download: TOP MISTAKES TO AVOID WHEN INVESTING IN PANAMA REAL ESTATE