Just as most companies have “core competencies,” so too do most investors. One of the legendary titans of growth investing, Peter Lynch, famously summarized this with his mantra, “Invest in what you know.”
Lynch embodied his advice in his 13-year career as manager of the Fidelity Magellan Fund (FMAGX), generating average annual returns of 29% between 1977 and 1990.
Lynch was fond of investing in companies he encountered in his day-to-day life, and said he often stumbled across winners during extracurricular activities. There’s absolutely nothing to stop the individual investor from using their own unique skill-set or interests in the same exact way to become one of the richest investors out there.
For example, if you’re a tech geek, you probably see some trends — whether you realize it or not – that Wall Street will be slow to notice. Alternatively, if you’re a mallrat your knowledge of the retail space could help make you a big winner in the stock market. From clothes to food to tech to coupon sites, figure out what your core competency is and cash in.
Be conscious of what you know, and use that to your advantage.
BEST INVESTORS TRAIT #3: OBSERVATION AND PASSION
BEST INVESTORS TRAIT #4: PATIENCE
BEST INVESTORS TRAIT #5: CONFIDENCE – “FORTUNE FAVORS THE BOLD”
http://www.msn.com/en-us/money/mutualfunds/5-traits-the-best-investors-in-the-world-share/ss-BBaPqHL#image=2