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11 reasons why this young man has all the characteristics of a master investor

by , 12 July 2016
11 reasons why this young man has all the characteristics of a master investor
Three years ago, I walked into the FSPInvest boardroom. Seated at the freshly polished mahogany table in front of me were six specially selected investment interns. These were some of the brightest investment minds the management team at FSPInvest could find in South Africa.

They just passed a rigorous interview process that earned them the right to be an intern at the FSP Invest office. All of them had impressive personal investment portfolios that would put some of the most experienced fund managers to shame.

I had one job - To put these bright young investors through weeks of painstaking investment writing training and reviews, place agonising stress tests on their investment strategies and batter them with a deluge of financial tests and exams.

Most of them seemed confident, arrogant even. Except for this one guy...

He sat at the end of table, in a wrinkled blue cotton shirt and an equally wrinkled khaki pants. He wasn't loud, cocky or boastful. Yet, he was the one intern that surprised me most.

This unassuming young gentleman was the only intern that didn't crack under the immense pressure we put him under. Not only did he survive the internship, he thrived under it.

And three years later, I'm proud to say, he has earned the respect of the entire team at FSPInvest. He also earned the admiration of the thousands of subscribers that rely on the investment information he delivers to them on a daily basis.

The 11 characteristics of a master investor

When I refer to master investors, I think about Andrew Carnegie, Warren Buffet, James O’ Shaughnessy and Benjamin Graham. These investors have shaped the investment world into what we know it to be today. Their strategies and investment principles are required reading in universities and investment institutions all over the world.
For the past decade, I’ve studied them, followed their strategies and watch thousands of investors fail trying to be them. I’ve come to the conclusion that these investment masters shared certain characteristics that contributed to their success.
Today, I want to show you why I firmly believe, Joshua Benton, the editor of Real Wealth has all the characteristics of these investment greats...

1.Master investors have a passion for learning

The first and most important characteristic of a master investor is that they have a passion for learning. They proactively look for and absorb information. They spend time studying the markets and read thousands of pages of investment publications a week.
I’ve never seen Joshua without a book in his hand...
Joshua says, “Warren Buffet claims to read two read books a day. I have tried to challenge him in that respect. So I read voraciously, not only books, but technical investment manuals, annual reports, magazines and investment strategies. I firmly believe that knowledge of the investment markets, global economies and investment strategies is what makes a great investor.”

2.Master investors share their passion with anyone who is willing to listen

When you have a passion for investing, you find yourself wanting to discuss the markets with anyone who is willing to listen to you. Successful investors know that there are two sides to every story. Benjamin Graham didn’t write the Intelligent Investor, because he needed to make money from it. He wrote it to inspire others to follow his investment techniques.
Ironically, this is the same reason Joshua heads up the Real Wealth today. “I jumped at the opportunity to become an intern at FSPInvest. I want to share my knowledge of the investment landscape and my investment strategies with as many people as possible.”

3.Master investors are patient

Joshua says, “When I spot a company that I believe is going to deliver exceptional gains, I don’t rush out and buy it immediately. I take my time and read up about the company. I look at its past financial performance, its management team and its future projects. This could take me a few days or it could take me a month. I only buy a company when I am 100% convinced that it will deliver the returns I expect it to.”
The same principle applies to selling a share. When the markets are in turmoil, like they are right now, master investors don’t make quick decisions. They evaluate every part of the businesses they own and then decide on the best course of action.
“We continue to advise that investors remain committed to a patient, long-term outlook and that the best way to do well in stocks is to use a disciplined, time-tested strategy that has the benefit of empirically tested results over a variety of market environments.” James O’ Shaughnessy.

4.Master investors don’t panic

To be a master investor, you need to have a strong emotional constitution. When the markets are volatile, the temptation to sell your shares and get your money out becomes real. Fear of losing takes over and panic sets in. Experienced investors don’t panic.
In the last issue of Real Wealth Joshua said this about the impact of Brexit on his portfolio, “I’m not worrying and neither should you. In the short-term, you can expect volatile markets and share prices, but don’t panic and sell everything. Be patient because any drop in share prices brings good opportunities to buy good companies at great prices.”
Joshua then goes on to highlight six companies that are presenting investors a perfect buying opportunity.

5.Master investors have a unique strategy

“Diversification is a protection against ignorance. It makes very little sense to those who know what they’re doing.” This is one of my favourite quotes by Warren Buffett. He is taking a stab at investors that apply the strategy of diversification to their portfolios.
Andrew Carnegie, a master investor who would have been worth $298.3 billion if he was still alive today said this in support of the diversification strategy, “The wise man put all his eggs in one basket and spent every moment of his life watching the basket."
This proves that it doesn’t matter what type of investor you are, the important thing is to employ a strategy that matches your investment goals. Once you are confident that you have a strategy that works, you need stick to it no matter what happens in the markets.

6.Master investors graciously accept losses graciously

One thing all master investment strategies have in common is that they all accept losses. So, when you are putting your investment strategy together, you need to acknowledge that not every investment you make will be a winning one.
Joshua says, “Right now I have 19 shares in the Real Wealth portfolio right now. Three of those shares are in negative territory. I’ve just recommended that readers buy two of the shares because they still meet my requirements. The third losing share I’ve marked as a hold. I haven’t sold this share yet because my strategy has triggered me to sell it. Even if I sell it at a loss later on, I know that I still have 18 highly profitable shares in the portfolio that will cover the one loss. I accept the loss and move on graciously.”  

7.Master investors spot trends and capitalise on them

Warren Buffett said this about trends when the 2008 financial crises hit, "Look at market fluctuations and trends as your friend rather than your enemy. Profit from folly rather than participate in it."
Last week, in an exclusive interview with Joshua, he told me about three trends that he is planning to take advantage of this year. The first trend is population growth, second is global warming and third is the legal drug market – Pharmaceuticals.
During our discussion Joshua gave me a clue to the next share tip he’s adding to the Real Wealth portfolio. He found this share hidden in the complexity of the third trend – Pharmaceuticals. True to his word, Joshua added a share, in the pharmaceutical industry, to his portfolio this month.
Joshua says, “If I ignored the trends in the pharmaceutical industry, I would never have spotted this profit opportunity. I’m confident that it will deliver returns in excess of 100% over the next 2 years”

8.Master investors are disciplined

When it comes to successful investing, you need to be disciplined. When I look at investors like Warren Buffet, Joshua Benton and Benjamin Graham, they have this in common. Apart from their investment rules, strategies and bulging bank accounts, they are persistent and disciplined.
They set standards and force themselves to stick to that standard. Even when distractions like Brexit come along, master investors keep their heads down and focus on finding the best profitable opportunities in the markets.
It’s like Warren Buffett says, “My two rules of investing: Rule one – never lose money. Rule two – never forget rule one.”

9.Master investors learn from their mistakes

It’s impossible to invest in the markets and not make a mistake. That’s a reality of the game. You could buy a share only to watch the share price plummet. Or you could sell a share too early, only to watch the share price reach higher highs while you miss out on the profits.
The thing is, master investors acknowledge their mistakes, accept the mistake, adapt their strategies and move on. You shouldn’t let mistakes get to you. Look at them as an opportunity to learn. This is part of the process of investing.

10.Master investors listen to those around them

You’d think that exceptional investors like Joshua don’t need input from others to make the right investment decisions. But that’s certainly not the case. A prime example of this was Joshua’s reaction to an invitation to head off to London to spend time with our fellow investment experts in the UK.
Given his track record in the markets, Joshua clearly did not need to pack up his things, leave his loved ones and travel halfway around the world for three months. I expected him to turn down the invitation.
That’s not what happened. Joshua graciously accepted, packed his bags and spent the next three months learning everything he could about investing in international markets. When he returned, he was motivated and excited to share the wealth of knowledge he received in the UK.
Here’s the clincher, when the Brexit vote came in. Joshua immediately picked up the phone and called the editor in chief of Capital and Conflict, Dan Denning in the UK. This is how the conversation started... “Dan, its Josh... I just saw the result. Is there anything you can tell me about the markets that I don’t already know?”
"It is better to hang out with people better than you. Pick out associates whose behaviour is better than yours and you will drift in that direction." - Warren Buffett

11.Master investors are humble and unassuming

You’d expect someone with the ability to make millions from the stock market to flash their cash and wear the fanciest clothes.
Look at Warren Buffett. He has more money that he knows what to do with. Yet, he lives in a modest home, wears modest clothes and handles each investment decision carefully. He doesn’t flaunt his cash in the faces of his peers, he avoids expensive toys and luxuries and treats everyone he meets with respect.
The same can be said for Joshua...
Just look at this photo of Joshua, do you know how long it took for us to get a smile out of him?
You wouldn’t say this is the guy that helps more than 30,000 investors make the most profitable investment decisions.
Many investors are surprised to find out that Joshua is the young man behind one of the most successful investment portfolios in the country today.
He’s a quiet guy that usually sits at the end of the table, speaking only when spoken to. He doesn’t overpower you with attitude but allows the results of his actions to speak for him.
And, the results certainly are impressive!

Just look at the performance of the Real Wealth portfolio under Joshua’s management...

  • 19 shares, 3 losers and 16 in positive gain territory
  • 6 of these shares are delivering double digit gains between 13.18% and 62.62%
  • 3 shares are raking in triple digit gains of 203%, 225% and 885.85%
  • While the JSE is delivering a 72.13% return, Real Wealth is delivering 233.72% returns
Watching this portfolio grow under Joshua is truly a thing of beauty...

Joshua Benton’s Real Wealth Portfolio shoots the lights out – AFTER BREXIT!

Very few investors will ever understand what it takes to be a great investor that delivers returns like this. The performance of this portfolio clearly shows that the young Joshua Benton falls into the category of master investor!
Joshua is too modest to admit that he is this good. But I’d like to show you something important that Joshua wrote recently. It will give you insight into the type of investment knowledge he has.
It will prove exactly why I am singing his praises. Joshua calls it the Rite of Wealth...
I’m truly privileged to call this bright young Master Investor my colleague and my friend.
Let’s build your wealth together,
Aiden Sookdin
Editorial Contributor
Real Wealth

11 reasons why this young man has all the characteristics of a master investor
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