Tip #1: Learn to invest from the best
It is important to know how to separate the grain from the chaff. The media, especially the internet, are full of false investment gurus who sell foolproof methods to invest in the stock market and earn a lot of money in a short time. Most, if not all of them, are charlatans who make their living selling useless books and courses at exorbitant prices.
To know who the best are, we must turn to the historical profitability of their investments. Warren Buffett, Peter Lynch, David Einhorn, Phillip Fisher, the managers of Bestinver … All of them have obtained great returns on their investments, making many shareholders and fund participants rich who have trusted them in the long term. One can earn a lot in a year if they are lucky, but the value of an investor is proven in the long run .
What do most of the best investors have in common? They invest in long-term stocks following the philosophy of value investing . They do not day trade, analyze charts, or invest in highly leveraged derivatives. Do not sell the bike with false promises, if you want to learn to invest like the best you should focus on value investing .
Tip nº2: Read a lot and of quality
Once we are clear that we are going to learn from the best, that is, that we are going to learn to invest according to the fundamentals of value investing, we must get down to work. For this, the best way is to read a lot. But that is not enough, we must look for quality content. There are three main sources of content that we should not rule out:
Books : The basic source of wisdom. I always recommend starting with “ The Intelligent Investor ” by Benjamin Graham , where the foundations of value investing are laid, teaching us to think like an entrepreneurial investor . As the number of investment books is enormous, I recommend that you go through my section of " recommended books to learn to invest in the stock market ", which will surely be very useful to you.
Blogs : Today we are lucky to have this great free resource at our disposal. In my links section you can see some highly recommended investment blogs in Spanish.
Social networks for investors : This is a source of information that we cannot rule out either. To find out which social networks to use, I recommend you take a look at my article on the 3 social networks for investors that are worth being on .
Tip #3: Be patient
Before you start, you have to know that learning to invest takes time, a long time. Furthermore, investing is an art that requires continuous learning that lasts a lifetime.
The art of inversion has a learning curve very similar to that of a martial art . In a short time you can learn the basics, but it takes a lifetime to be a true master and the learning process never ends.
Tip #4: Apply Theory
Having a solid theoretical base is essential to learn to invest. However, practice cannot be neglected . It is necessary to balance theoretical learning with practical learning. For example, you can start by looking at the presentations of results and annual accounts of some listed companies to get used to it over time and it will not be difficult to analyze the companies in depth in the future.
Tip #5: Be consistent
In learning to invest in the stock market, as with diets, physical exercise or studies, consistency is essential. As the Roman poet Ovid said :
"The drop of water pierces the rock not because of its strength, but because of its constancy"
My recommendation is to establish a roadmap with specific objectives . For example, analyze a company every month or read a book every 2 months. The important thing is that these objectives are precise, attainable and adapted to our time and knowledge.
Should I follow all these tips to learn to invest in the stock market?
In this answer I will be blunt. It is essential to follow all these tips to learn how to invest in the stock market . Just skipping one of these tips can prevent our great goal, that of learning to invest in the stock market.
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