Provocative title? Yes I agree. The main intention behind this post is to point out the characteristics that I believe are unique to wise investors. But first, we will have to define the definition of a wise investor. A wise investor does not need to get the highest returns but rather they must be able to prove that they are able to soldier through difficult market situations and still remain objective to make the best of it. This means that they must possess the right temperament whenever they experience an unexpected hit in the market. As it is tough to find the person during such rare scenarios, I think it will be worthwhile to talk about other traits of wise investors in general. Hopefully, this post will help us understand that investing requires a rare set of skills that only few investors have, thereby making it valuable for us to identify them if we come across one or more of them in our lives.

Wise Investors talk about their losses (not gains)

Talking about one’s gains instantly attract the attention of almost all investors yet lessons learn through wrong moves are met with false sympathy as well as mockery. As much as this might be a pity in reality, it actually helps to filter away shallow individuals who only care about making profits without knowing what is happening. To emphasise on this point, I would like to remind investors that investing is a journey that requires long term commitment and focus. Even so, we will still be smacked hard as the market presents random challenges even for the most stable businesses. Therefore, a wise investor will always value experiences gained through failure and mishaps as those outcomes create lasting impacts that will only reinforce the need for them to stay grounded and realistic.

They focus on lessons learned from their journey as an investor

Wise investors treasure their lessons as those lessons shape their future as a person. Why so? If you practice sustainable investing, your returns will likely compound overtime and you will eventually make substantial profits from your investments. At that point, will you still care so much about returns and gains? Personally, I would think that no one at that level will be much concerned about their gains because they would have either understood the limitations of investing and have pursued another profession, otherwise they would have learned that their investment returns are merely tools to advance dreams and missions that they believe in. Those realisation would have become the greatest gift that investing would have given them.

They understand that investment is about capital or money management

Investing is no different from gambling if you are unsure about your moves in the market. Otherwise, investing is merely a skill to manage (steward) capital in your legal possession. As such, the main goal of every wise investor is just to take care of their capital and accumulate more of it through investing and trading over time. Those returning returns are none other than a testament of their efforts and stewardship hence, there will be little or no strong inclination for them to flaunt or use those capital in large quantities for personal enjoyments. Instead, I think that they would rather employ their capital to make an impact in the lives of those who need it.

Closing thoughts

I dare not say that I can live up to these expectations of a wise investor but I think I can make a conscious effort to move towards it and one day be a less selfish and humble investor in the future.