7 Timeless Investment Mantras for Enduring Success in the Markets

investing.com:

Great investors like Buffett, Lynch, Graham, and Marks aren't distinguished solely by their ability to identify the best deals. They adhere to a unique and significant investment philosophy that guides all their actions in the markets.

Here are 10 fundamental ideas and approaches that you can adapt from these legendary investors:

Consider your banker or advisor: Do they invest in what they propose to you? How did their personal investments perform this year? How do they manage not just your money but their own? Asking such questions may strain relationships.

The best strategy means nothing without emotional management. Planning is crucial, but without emotional control, it's worthless.

Buying an index (like the S&P 500) and holding it for 20 years is more profitable than entering and exiting the market. Planning well from the start for a sufficiently long time horizon and sticking to the plan usually outperforms market timing.

Marks's approach to risk emphasizes that volatility is not risk; it's a natural market characteristic. The real risk lies in uncertainty about outcomes and potential losses in unfavorable situations.

Graham teaches us to be wary of the crowd, think independently, and not be swayed by the often emotional and irrational herd. Following the contrarian logic is a common-sense approach, albeit one followed by few.

Many investors invest randomly, aiming to «make money,» which, upon reflection, makes no sense. Dalio recommends Goal-Based Investing (GBI), where you define goals with specific amounts and deadlines, enabling the right strategy to achieve those precise goals.

Choosing a bad market moment or enduring market swings is possible, but patience and a long time horizon bring investors closer to