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Characteristics of the Intelligent Investor

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It’s easy to have a game plan, but if you’re not focused, you will be influenced to get off track from other’s opinions. Here are a few characteristics you can reflect on and see if you have what it takes to be an intelligent investor.

Intelligent Investors

Don’t freak out every time their stock portfolio is in the red.

Do control their emotions, in Bull and Bear markets.

Intelligent investors know that there will be good and bad days. And depending on their portfolio, they will have enough diversity to maintain consistent growth.

Don’t buy a set of stocks just because someone else that has them.

Do have a written strategy of what they want to achieve.

Articles are seen everywhere with titles such as “Buy These Top 3 Dividend Stocks” or “See How I Made $10,000 In One Hour”. While these may have vital information, the Intelligent investors will make their final decision based on what suits their needs.

Don’t buy on impulse.

Do buy valued securities.

Intelligent investors understsand the value of their securites. They understand the importance of investing in a stock or bond that will produce consistent, long-term and lucrative profits. Though they understand the crucial need to have dividends, there is always a chance that dividends may be a cover up for poor financials in a business.

Though these are a few of many characteristics, intelligent investors understand that they are neither right, nor wrong just because a crowd disagrees with them. They are right because their data and reasoning is right. Once said by an Intelligent Investor, “If you ever feel stuck about tour investment, look at the financials, they will never lie to you”.

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