Over the years legendary investors like Warren Buffett, Benjamin Graham, Carl Icahn, Peter Lynch, and many others have shared successful investment secrets. However, these investors have made a large amount of wealth and even helped millions of others achieve great returns in the market.

So, whether you are a beginner or an experienced trader, these five trading secrets from 5 of the World’s greatest investors will help you find winners, manage emotions, and keep perspective during tumultuous times.

Here are 5 timeless trading secrets for long-term success:

Warren Buffet – “Only make investment in a business that you understand”

Known as the Oracle of Omaha, Warren Buffet is one of the most successful investors of all time. Buffett runs Berkshire Hathaway, which owns more than 60 companies, including insurer Geico, battery maker Duracell and restaurant chain Dairy Queen. Buffett is considered to be one of the greatest investors of all time. His investment strategy, value, and principles can be used to help investors make better investment decisions.

As per him, before investing in the stock of a company, the investor needs to understand how the company generates business, makes money, and what the key drivers that impact its industry are. The more you understand the less risk you take. In short, be a well-informed investor.

Benjamin Graham – “Invest with a Margin of Safety.”

Graham is often called the “Dean of Wall Street” and is regarded as the father of value investing. As one of the most successful investment managers and financial educators, Graham developed the concept of fundamental security analysis and introduced value investing strategies that are still guiding successful investors today.

According to him, investors should focus on ‘Margin of Safety’ which means buying securities at a discount to its actual worth or intrinsic value. This practice not only acts as a shield for the investor but also provides high-return opportunities. He believes in fundamental analysis and sought out companies with strong balance sheets, or those with little debt, above-average profit margins, and ample cash flow. In short, invest in sound emerging companies.

Peter Lynch – Invest in What You Know

Peter Lynch is one of the most successful and well-known investors of all time. As the manager of the Fidelity Magellan Fund from 1977 to 1990, Lynch managed to realize an annual return of 29%, assets grew from $18 million to $14 billion. He firmly believes that individual investors had advantages over professionals when it came to research.

According to Lynch, Investors should adopt the bottom-up approach to discover good investment opportunities. He suggests digging up possible investment options, one-by-one, then getting familiar with the company business and lastly conducting the fundamental analysis to verify growth and profitability potential. In short, it’s prudent to study the fundamentals of the company you are planning to invest in.

Carl Icahn – Invest in assets which have good potential for productivity

Carl Icahn is one of the most successful figures on Wall Street. He is popularly known as ‘corporate raider’. In February 2017, his Net worth is estimated at $16.6 billion and he was also known as the 5th wealthiest hedge manager.

At his core, Icahn is a contrarian and value investor, focusing on companies that have fallen out of favor with the public and are trading deep into value territory. He believes to invest in those companies with share prices reflecting poor price-to-earnings (P/E) ratios. He chases for those corporations with stocks having book values exceeding their current market values. In short, be on the lookout for hidden gems.

Bill Gross – Manage your risk carefully by not over betting in each singular investment

He is known as one of the most successful and ‘out-of-the-box’ investors in the world. Known as the “Bond King,” Gross founded Pacific Investment Management Company (PIMCO), the largest bond fund in the world as of 2014. While Bill’s main focus is buying individual bonds, he has an investment style that focuses on portfolio management.

According to him, “Do you like a particular stock? Put 10% or so of your investment on it. Make the idea count. Good [investment] ideas should not be diversified away into meaningless oblivion.” In short, it’s good to spread your investments in various companies.

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