🥾 7 Lessons to Become a Better Investor

Herbert Wertheim is one of the biggest self made investors of all time.

He:

• Holds 9 patents

• Self made Billionaire

• Built an international eye equipment company

• Donated over $70 million to charity

Here are 7 lessons you can use to be a better investor.

1. Invest in what you know

Herb knew a lot about patents, so he invested in companies that had many patents. He stuck to what he knew and what he could understand. This let him make higher conviction picks.

2. Double Down on Conviction

If you like the company and it's business model, stick to your convictions. If it's a good buy at $69, then it's a even better value at $49.

3. Never Sell

Herb never wants to sell. Because of his strong convictions with the stocks he's buying, Herb sees no reason to sell.

Two of his biggest holds.

1.25mm AAPL shares and buying MSFT at the IPO.

4. Have an Exit Plan

While Herb never wants to sell, sometimes his bets go awry. He sets a limit for how much stock can decline before selling. Create a rule that you can only sell if and only if these exact conditions are met. You will decrease your chance at panic selling.

5. Invest in Yourself

While Herb was in college, he stayed up late to work and improve his inventions. Investing in yourself is a sure fire way to beat the market. So if there's a course or a class you want to take, sign up for it.

6. Use Cashflow to Reinvest

Herb used the cashflows from his business to fund his portfolio. No matter how much you earn, take a portion of your earnings and reinvest that into cash flowing assets. Then use the cash from that asset to start the compounding cycle.

7. Play the Long Game.

Herb always sets his sights long into the future not caring what his portfolio does on a daily basis.