Three Investment Lessons from the Witch of Wall Street for Modern Investors

Explore the three key investment lessons that Hetty Green, the Witch of Wall Street, imparts to today’s investors.

If you are seriously considering investing, don’t miss the lessons from Hetty Green, known as the “Witch of Wall Street” over 100 years ago.

unsplash

1. Invest, Don’t Speculate

Knowing the difference between speculation and investment is one of the core principles of all successful investors. As Warren Buffett often says, “Speculators tend to focus on how much the next buyer will pay them.” However, true investors evaluate a company’s prospects based on thorough research before purchasing stocks.

Hetty Green also adhered to this philosophy. She always avoided speculation and made investment decisions after thorough research. Green always tried to understand the fundamental value of companies, which was one of her secrets to success.

2. Seek Value and Quality

Green’s investment philosophy was to find companies with high intrinsic value during economic downturns. She bought stocks in large quantities when prices plummeted, leading to significant profits.

Green always pursued “value investing” and preferred companies with strong earnings and reliable business models. This approach aligns with the investment philosophies of Graham and Buffett. Her approach was simple but powerful: find excellent companies at low prices and hold onto them.

3. You Can’t Invest Without Saving

Finally, Green emphasized the importance of saving. “No one can invest without money,” she said. Savings are the basic condition that allows for investment and preparation for emergencies.

Green always lived frugally and managed her money meticulously. Her rigorous saving and management allowed her to consistently succeed even during economic crises.

unsplash

Conclusion

Hetty Green’s lessons are simple yet powerful. Invest instead of speculate, seek value and quality, and prepare for the future through saving. These three principles remain valid for today’s investors and can be a shortcut to success.

May you also gain new insights into investing through Hetty Green’s lessons and become a successful investor.

Source: Fortune, “Three Buffett-esque lessons from the forgotten ‘Witch of Wall Street’”

답글 남기기