๐๐๐๐ฎ๐ฎ๐ฎTalent versus Luck - Which is more important when it comes to investing in the stock market?
Talent can be defined as a natural aptitude or skill. However when it comes to investing it is not easy to have a natural aptitude for investing. It is more important to develop a skill as something that a person becomes good at through practice and training.
This means spending time to look at the facts about a business, about an industry and thoroughly evaluate the business before deciding whether to buy the stock. To get really comfortable with reading company reports, profit and loss statements, balance sheet and also checking out the key persons in management whether their interests are aligned with their shareholders.
Talent will come through due diligence on honing these skills.
Luck is defined as success or failure apparently brought about by chance rather than through one's own actions.
In the short term, one may experience good or bad luck but in the long term it is Talent /Skill that determine the results.
Talent comes through the honing in the knowledge and time put in developing a deep understanding of the markets.
Ultimately success and making money from stocks come from Talent/skill.
Warren Buffett is a great example of a person with such a talent. It is not something that happens overnight just as Rome wasn't built in a day.
However Talent alone is not enough to make money from stocks in the long run. It is Time in the market and Patience that will shine through and the results are simply remarkable!
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