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The Fastest Way to Find Your Investing Style

As I have discussed, the importance of finding an investing style that actually suits you cannot be overstated. But, how do we actually go about finding a suitable style?

A quick and simple way is to read up on the different styles employed by different well-known investors. Through them, we can gain a better grasp of the rationale and thought-processes behind each investing style.

In this way, we can also form a connection and be more aware of an investing style that we’re better aligned to.

How I found my investing style

I hope a recount of my own personal experience in finding my investing style can help guide you on your own quest.

So, I started out just like anyone – by reading through many investment books. I initially found books about investing legend George Soros to be very intriguing.

In a similar manner to Soros, I also believed that the market is inefficient and many investing decisions which are made in the stock market by different participants are based on emotional factors. Soros’ theories on reflexivity in the financial market became the basis on which I started developing my investing style.

Bear in mind that the point here is not to find a famous investor to copy, but rather to use his or her ideas as a starting point to develop your own style.

So in my case, Soros was not the only investor I looked up to and learnt from. As I read about how Warren Buffett would invest in the shares of great companies (those which can go on to grow steadily and surely through many decades) at temporarily depressed prices, I also started considering the market’s perception about a company.

I would then end up trying to buy great companies only when the market’s deeply pessimistic about their futures. In this way, I hope to profit from both the company’s growth potential and a future change in the market’s perception about a company.

Foolish takeaway

As you learn more about other investing styles, you can mix and match them and create an investing style that’s uniquely suited to your idiosyncrasies and temperament.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore writer Stanley Lim does not own any shares in companies mentioned above.