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5 Things Top Investment Professionals Don’t Do

Are you the top investment manager or the top trader?  How did you become one of the best investment professional in the world?  What did you do?

Or do you always want to be one?  What do top investment professionals do?  Perhaps they might never want to share.

Here, we look at 5 things top investment professionals don’t do:

#1 Follow Mainstream News

Financial Markets

Breaking news from Bloomberg, Reuters or CNBC?  Many investment professionals religiously follow the never-ending breaking news.  You can be the first to break the news and to decide the next investment strategy.  You managed to seize the initial advantage: to decide if you should move or not to move.

But why don’t top investment professionals follow them?

3 Possibilities Why They Don’t Follow Mainstream News:

  1. The news are published for the general public, not for the experts.
  2. They already have access to all data, why rely on news with lesser data?
  3. If they have to rely on mainstream news, they wouldn’t be at the top.
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#2 Engage in General Debate

Head of Wealth Management

Who doesn’t have an opinion?  Especially when it comes to price, economy, forecast and stocks.

” A prediction about the direction of the stock market tells you nothing about where stocks are headed, but a whole lot about the person doing the predicting ”

~ Warren Buffett

While many investment professionals spend their time daily discussing and debating about investments and strategies, top investment professionals rarely do that.

3 Possibilities Why They Don’t Engage in General Debate:

  1. Why waste time debating when its either right or wrong.  And time will tell.
  2. How much of your clients’ assets or personal wealth are you staking on it … if you are so confident?  Everything? 5%?
  3. If you are right, they will be wrong.  Why get you to be right when they can accumulate the maximum positions they could, and knowing you will be, proven wrong.

 

#3 Take Credit

Global Investment Committee

How do you be a successful investment professional?  Earn a PhD?  Go to Harvard or Stanford?  Be certified with CFA or CAIA?

You need to build a profile and reputation for yourself.  You need to start taking credit for successful investments. Many investment professionals spend their career taking credit for making the right calls, and having the right views.

But the top investment professionals rarely do so.

3 Possibilities Why Take Don’t Take Credit:

  1. To achieve maximum result (max. returns), it is more of luck than anything else
  2. When you are right, you are (almost & always) not the only one
  3. They made so many rights in their career, they couldn’t even count.

and perhaps one more: why invite attention to scrutinise or replicate your investments?

 

#4 Teach or Share

Investment Meeting

Do you always want to teach or share your knowledge on global economy and investments to fellow professionals or clients?  For every change in the financial market or the economy, are you able to deliver the reasons or explanations in immaculate details?  Do you even try?

Is this something you can really teach or share?

3 Possibilities Why Top Investment Professionals Don’t Teach or Share:

  1. How do you explain what you can understand about global markets, the world, the economy, demand and supply, investments and trading are, actually as easy as abc?
  2. Is there any reason why they should teach or share how to make millions or billions?
  3. It can’t be taught.  Someone will have it (all ingredients).  And the odds are independent: 1 in 1,000, 1 in 10,000 or 1 in 100,000 … …

 

#5 Network

Private Banking Event

Investing is not a game of knowing more people. It is taking (making) more money from the financial market than others.

While many investment professionals spend time networking with one another to improve their knowledge and investing skills, top investment professionals might be spending time wondering how to take advantage of the investment professionals who are (still or forever) learning from one another.

” HERD MENTALITY OR SAFETY IN NUMBERS “

In other words (or as an example), profit from their massive trading or investment activities.

3 Possibilities Why They Don’t Network:

  • Why even spend time with investment professionals who think they know what they are doing
  • What should they say at networking sessions? I made billions?  Would you like to learn from me?  You are the next top Hedge Fund Manager?
  • They already have the best network.  A global network to buy and sell that generates returns / profits.

In the markets, the markets are a pure meritocracy. When we put a trade on the bond market, there’s no branding that goes on that trade! You’re right or you’re wrong. The markets are the ultimate meritocracy and if your organization isn’t a meritocracy, you’re just going to be fooling yourself or you’re going to bang your head into a wall

~ Bob Prince co-CIO Bridgewater Associates

What do you think? Are you a top investment professional?  Do you know of any top investment professional?  What do they do?  What do they not do?



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