Becoming a Master-Investor

"Philo, show me the way."

To walk the path of a master-investor — work on this.

Skill/Learn from mistakes/Experience.

Learn as much about investing and business as possible. Expand your circle of competence on business sectors and models. If you only know retail, you won’t see the opportunity in energy or technology. Understand that there is no completing this game — you need to cultivate a mindset of infinite learning and improvement. This happens when you combine knowledge and experience.

Simplicity/Constantly Sharpen your Edge.

You need to layer angles and advantages on top of your craft wherever possible. Learn to reason by inversion. When you have two opportunities with similar payoffs — and one is more complex than the other, solve for the simplest choice. Removing complexity makes you more robust. Understand that stacking tiny advantages makes for incredible results. Complex problems need simple solutions.

Endurance/Patience/Emotional Control/Time.

Internalise the idea that even all this study and preparation is not enough. Train yourself to endure through trying times and learn to stand completely by yourself. Markets will constantly try to get the best of you. Practice eternal patience. Triumph over time is one of the greatest skills you can gain.

Flexibility/Open-Mindedness/Non-Laurel-Resting.

Cultivate the idea that there is no final stage in your path as a master-investor. Understand that you need to be comfortable doing nothing, while at the same time being ready to do everything. Buy-to-hold is not about buying and forgetting — it’s about buying and always assessing. Your capital has opportunity cost.

“But true Zen never stops, never congeals into such truths. That is why everyone must constantly be pushed to the abyss, starting over and feeling their utter worthlessness as a student. Without suffering and doubts, the mind will come to rest on clichés and stay there, until the spirit dies as well. Not even enlightenment is enough. You must continually start over and challenge yourself.”

Mastery by Robert Greene