Part 5/10:
When asked about the top qualities that define a successful investor, the answer is clear: patience is paramount. The markets often deceive us into thinking we must act immediately, stimulated by flashing red and green lights on financial screens. However, legendary investors like Warren Buffett emphasize the importance of patience—taking a long view and making a limited number of well considered decisions.
Buffett famously compares investing to using a punch card—roughly 20 decisions over a lifetime, typically one every few years. This approach underscores that investment success relies heavily on the ability to resist the urge to act impulsively and to focus instead on understanding the underlying competitive advantage and long-term prospects of a business.