5 Common Traits of a Mature Investor
The 21st century is full of big-name investors you may recognize such as Gary Vaynerchuck (Gary Vee), Roger Ver, and Mark Cuban. These gentlemen are not mentioned for the amount of money they currently earn or hold, but more so for their mindsets when it comes to investing. It's about the way they think as well as their outlook on the world.
Why would one even desire to be a mature investor in the first place? The reason lies in the ability to spot a good opportunity and capitalize on it. Being a mature investor allows you to take a step beyond the average and see things that others don't recognize.
The following 5 traits are by no means an exhaustive interpretation of a mature investor. Many other factors come into play which will not be discussed here. If you entertain some or all of these traits, then you are well on your way to becoming a mature investor yourself. Let's dive into the 5 common traits that a mature investor keeps in their front pocket on a routine basis.
Trait #1 - Research-driven
Before any mature investor chooses to make an investment into a stock or a digital asset, they first do their due diligence. They spend days, weeks, or perhaps even months rifling through documents, videos, blogs, and other publications to find out more in regards to their potential investment.
A mature investor knows that if they are going to put their hard-earned money into something, that it is a legitimate company or digital asset with a promising future. In some cases, a mature investor will turn to their close circle of friends for advice on a particular investment, then use their best judgement based on the information they were given.
Trait #2 - Wisdom-oriented
Notice that the word is wisdom and not knowledge. Why are elders generally considered to be wise as opposed to younger generations? It comes down to experience and living through more situations that develop and shape their minds. Then, from those experiences come a strong sense of wisdom which, in reality, is knowledge that has taken shape by living out what they have learned.
Gary Vee, during his on-stage talks, discusses how he used to visit the elderly when he was young and listen to their stories. He wanted to learn from them so that he could perform at his best based on their wisdom. Do you have to be up-in-age to be a wise person? Not at all. As long as you have experience under your belt, you can be wise and share that wisdom with others who desire to learn. Mature investors value wisdom and deploy it into their daily decision-making.
Trait #3 - Patient
Patience is tough to come by for those investors who are still in the beginning stages and are testing the waters with small amounts of capital. Many people tend to focus on instant gratification as opposed to long-term results which creates a strong tension between desire and current reality.
Mature investors have a steadfast sense of patience that endures through the tough times. This type of patience waits with fervor and an eager enthusiasm. Patience modeled here is rooted in a strong understanding and peace with an investor's assets as a result of their research-driven habits mentioned earlier.
Trait #4 - Forward-focused
You can't see where you are going unless you look ahead, facing forward towards what is to come. Mature investors are focused on the future. Not only that, but they know that they will make mistakes along their journeys. Even so, they are grounded in the fact that they can quickly LEARN from those mistakes and move forward with the same level of enthusiasm they had at the beginning.
A popular author on leadership, John C. Maxwell, has a book called Failing Forward, a great read for a cloudy day. The basic synopsis says that WHEN you fail, because you will fail sometimes, you can use that experience to do better next time instead of being stopped in your tracks. Mature investors embrace failure and continue focusing on where they are headed.
Trait #5 - Drama-repelling
Mature investors do not have time for drama of any kind, neither online nor in-person. They do not have time for unnecessary banter or bashing, especially when it comes to their particular investments or a strategy they are pursuing.
Drama can come in all shapes and sizes, it can even come from close family members and friends. Mature investors don't allow drama from others to affect their emotions nor their train of thought. They know that in order to make solid investment decisions, they need to maintain a sound mind and a sound spirit.
Bonus Trait - Storm-weathering
Mature investors are able to weather the storm, no matter how intense it may be. Investing can be a difficult road to travel down and certainly is not for the faint of heart. Mature investors recognize the risk involved and stick with it through the rough periods where it looks like there is no hope in sight.
Mature investors have already done their due-diligence in research, gained the necessary wisdom, stayed patient, focused on the future, and repelled the drama. All of the above traits prepared them well for weathering the storm. Why? Because they have faith and know that the investment they made is sound and that they will not be blown away during the storm.
Do some investments go south occasionally? Of course. Nothing is guaranteed in life. But, mature investors fail forward and do not let temporary downturns dictate their long-term success.
Thank you for reading.
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Information in the article does not, nor does it purport to, constitute any form of professional investment advice, recommendation, or independent analysis.