Investor Information: Smart Investors

There is a difference between "average" and "smart" investors and it may be worthwhile to ponder over these differences.

Average Investors

• They do what most other investors do and they display typical "herd" behaviour
• They rely on unqualified tips and investor or market noise when selecting stocks.
• They have no clear strategy or credible selection method for choosing such stocks.
• They hope for and wait for established bull markets before they enter the markets.
• They live in fear and anxiety and always worry about the next market crash.
• They fear losing much more than they enjoy winning.
• They often tend to buy more shares in a bad stock to obtain a better price average.
• They rely almost solely on analysts and stock brokers to select and trade on their behalf.
• They are often driven by greed and they rather seek quick profits than long-term value.
• They often buy marginal or suspect stocks at prices and info unrelated to real value.
• They fail to understand that buying stocks are almost the same as buying companies.
• They tend to buy when the price is high and then sell when the price is low.
• They are obsessed with investment spread, safety and even extreme diversification.

Smart Investors

• They do what most other investors fail or neglect to do.
• They rely on verifiable fundamentals and identified value when buying stocks.
• They have a clear strategy for investing and they stick to it at all times.
• They understand that value is important in both bull and bear markets.
• They never panic when markets fall and they know it is all part of the process.
• They enjoy winning much more than they fear losing.
• They cut their losses and seek other opportunities where there is more value.
• They identify accredited resources and then make their own trading decisions.
• They know that term and verifiable value is the key to successful investing.
• They always attempt to buy stocks with good embedded value at a discount.
• They know that buying stocks and buying companies is almost the same thing.
• They try to buy when the price is low and then sell when the price is high.
• They focus on value, opportunity and real reliable return.