There are three ways of Investing by which an investor can invest to acheive superior results.
1. The Intellectual path
2. The Physical path
3. The Emotional path .
The Intellectual Path:
Great investors like Warren Buffet, Charlie Munger, John Templeton and a few others have taken this path of beating the markets. This path is pursued by those who have profound understanding of investing, can see future trends clearly and can understand business and the environment. They know that patience ia virtue and therefore take long term strategies.
This method is all about cash flow approach. It is the most difficult path as it requires a keen mind to study the different concepts of investing ie how different businesses work and how economic policies and market forces affect the business environment.
Here the name of the game is Patience. Such investors look out for good opportunities and bargain prices. As long term investors, they are waiting for them. They are not erturbed by the events, news, rumours and gossip that create short term volatilities. They have a strong belief in their abilities and , since thier goal is to invest long term for cash flows as against Capital gains, they are in no hurry to invest. Theey have the patience to wait till the right moment.
