I followed this with saying regardless of investing style, time frame, or philosophy, these great investors all have discipline, transact based on logical, informed thinking and do not let emotions drive their decision-making.
You should recognize:
- What sets these companies apart from their peers,
- The prospects for the markets in which they operate
- How the stock market values them
Investing is so much more than following some rules of thumb. Getting an edge is difficult, so you shouldn’t develop irrational self-confidence and think you have an investing edge when you really don’t.
Consider Investing in Index Funds and Mutual Funds
Once you’ve gotten a decent handle on the overall market’s activity and analyzed a set of attractively-valued companies you think stand out from the rest, it’s your time to pull the trigger.