What’s Your Investment Style?
“Know thyself” is one of the secrets of investment success
Do you know your investment style?
Every successful investor has his own approach that suits his personality. Warren Buffett, for example, began his investing career in the 1950s as a Benjamin Graham “clone.”
Today, while some of the criteria he applies today are different from Graham’s, he still aims to buy below intrinsic value. But he now defines intrinsic value as the discounted present value of a company’s future earnings, not its break-up value, which was Graham’s metric.
Sir John Templeton is also a former Graham student. But he didn’t just look for the cheapest stocks in the United States; he searched for the cheapest stocks in the entire world, and made a fortune for himself and his investors in the process.
George Soros—whose success owes nothing to Graham or Buffett—has an entirely different and speculative approach. Even so, Soros’s investment system is composed of the same 12 building blocks as Graham’s and Buffett’s.
As are the investment approaches of Bernard Baruch, Carl Icahn, Peter Lynch, and Philip Fisher.
Even successful investors in real estate, antiques and collectibles, not to mention commodity and currency speculators—totally different markets—owe their success to having a system comprised of the same essential elements—one that fits their personality and interests.
The simplest way to identify your investment style is to answer my Investor Personality Profile questionnaire. And while you’re there, compare your Investment IQ with Buffett’s, Soros’, and Icahn’s. You’ll receive a detailed analysis of your strengths and weaknesses—and how to turn those weaknesses into strengths.