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Donald Trump Might Be Right About This On Investing

Love him or hate him, Donald Trump is certainly one character who is hard to ignore. The current leading Republican candidate for the next Presidential Elections in the U.S. wears many hats.

Besides being a real estate mogul, he’s also a celebrity and more recently, has entered into the realm of politics. Trump also has had a colourful business life, having gone from a millionaire to nearly bankrupt and then to a billionaire. He has also seen four of his big business ventures declare bankruptcy over the years.

But putting all his controversies and failed business ventures aside, he does have some wise words to share on what it takes for someone to be a better investor.

Read to earn

In his book Trump: Think like a billionaire, Trump had a section on how he learnt to become a better investor.

One of the main takeaways from the section was the need to read more. He wrote about how he reads everything he can find about finance and business and about how he’d also read every single newspaper and major business magazine that he can get his hands on. His thirst for reading is not unlike that of the legendary Warren Buffett, who’s well-known to be a voracious reader.

Trump also wrote about the importance of keeping an open mind and of finding information which might disagree with your conclusion so as to make sure you have analysed an issue from all possible angles.

How to pick a stock

Here are some of my favourite quotes from his book on how we should pick our investments;

  1. “Do your homework before you invest. A dumb investor is a dead investor.”
  2. “… always research what you are buying. Don’t go for the hot tip or quick hit. Those types of investments usually end up in the trash can.”
  3. “Buy companies only when you understand what they do.”

These words sound like very similar to things you’d hear from great stock market investors like Buffet and Peter Lynch.

Learn the habits

There is no secret that can instantly make you a better investor. As it is with any type of skill, time and effort’s required in order for us to improve.

Even billionaires like Buffett and Trump have spent time to read and improve themselves as investors – this is a habit well-worth cultivating.

But beyond just reading and knowing what makes for a good business or investment, it’s also important to not turn lazy and buy something simply because you have a heard a hot tip. Research is always a must as we must be able to understand what a company does and how it’s actually making money.

Learn the right habits, and you’ve already taken a big step toward investing success.

There's a lot more to talk about with this topic and if you'd like to do so in person, you can come meet David Kuo and the rest of the Fool Singapore team on August 15! 

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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 companies mentioned above.