Annabelle Dickson
5 minutes reading time
The world’s best investors don’t rely on luck, gut feelings or clickbait tips. They build wealth through consistent habits.
Thankfully, these habits don’t require millions of dollars or a top university degree to learn. From Warren Buffett’s patience to Leah Zell’s disciplined strategy, the most successful investors follow principles that are easy to understand and stand the test of time.
Below, we spotlight five key takeaways from legendary investors. Each principle can help you cut through market noise and focus on what really matters: building long-term wealth.
1. Warren Buffett: Patience rewards the persistent
“The stock market is a device for transferring money from the impatient to the patient.1”
What it means
Buffett’s point is straightforward: people who jump in and out of the market based on short-term headlines often lose out to those who stay the course. Patience is a superpower – it lets compounding returns work their magic over time, rather than being derailed by panic selling.
How to implement it
Commit to a long-term approach. If you’re using ETFs, consider setting up a recurring investment (known as dollar-cost averaging) so you keep adding to your positions regularly – rain, hail or shine. By ignoring ‘noise’ and focusing on quality and diversification, you won’t be handing your returns over to the next impatient investor.
2. John Rogers Jr.: See volatility as a chance
“Volatility is opportunity – when you’re in it for the long haul, a down market can be a buying chance, not a disaster.2”
What it means
As Co-CEO of global asset management firm Ariel Investments, John Rogers Jr. stresses that market dips can be viewed like a sale at your favourite store. If the fundamentals of your holdings remain strong, lower prices are effectively a discount – rather than a death knell.
How to implement it
If you believe a sector or broad market index has suffered a temporary downturn (fueled by specific economic or market conditions), you could consider gradually increasing your holdings. For instance, if the share market wobbles, adding a bit more to a diversified ETF at lower prices may help position your portfolio for potential gains in the long term.
3. Hetty Green: Avoid speculation, invest with discipline
“One thing, however, has been wrongly attributed to me, and that is speculating. I never speculate. Such stocks as belong to me were purchased simply as an investment, never on a margin.3“
What it means
Known as ‘America’s First Value Investor’, Hetty Green was one of the most successful investors of her time. She amassed a fortune through disciplined, strategic investments rather than speculation. Her philosophy highlights a crucial investing truth: building real wealth is about making calculated, long-term decisions, and not chasing quick wins.
How to implement it
Take a fundamental approach to investing. Focus on assets with strong long-term potential rather than short-term speculation. If you’re investing in stocks or ETFs, ensure they align with your risk tolerance and financial goals rather than reacting to daily market fluctuations. Wealth is built through patience, not reckless bets.
4. Li Ka-shing: Embrace emerging opportunities
“Knowledge is not a guarantee of a life of riches but it does open the door to more opportunities. And recognising more opportunities is really the best that you can expect.4”
What it means
One of Asia’s wealthiest magnates, Li Ka-shing stresses that knowledge alone may not automatically make you rich – but it expands your horizons and help you spot valuable opportunities. From new technologies and shifting consumer trends to macroeconomic changes, staying curious and informed enables you to identify when and where to act.
How to implement it
Consider ongoing education. That might mean reading up on emerging themes – clean energy, AI, cybersecurity, healthcare innovations – and exploring related thematic ETFs if you think a trend has genuine growth potential. The more you know, the easier it is to recognise when a new opportunity fits your goals and risk appetite.
5. Leah Zell: Learn by doing
“Establish a strategic framework of what you want to accomplish and stay focused on it. You don’t want to check your portfolio every week, you don’t even want to look at it, frankly, more than twice a year because all it will do is get you stirred up about things you can’t control. Take the emotions out of it. Put a rational structure on it and stay the course.5”
What it means
Known as the ‘Queen of Small Caps’, Leah Zell has built a remarkable career in the male-dominated funds management industry. The Harvard-educated founder of Lizard Investors LLC emphasises the importance of setting a strategic plan and resisting the urge to react to short-term market fluctuations.
While daily price swings are beyond your control, how you respond is within your power. By avoiding constant monitoring, you minimise the risk of making impulsive decisions that could derail long-term success.
How to implement it
Rather than checking your investments every five minutes, set a regular (but not too frequent) schedule to review your portfolio holdings. This could be quarterly or even twice a year. For many Australians, an ETF that tracks a broad market index can make this discipline easier. This way, you can capture long-term market growth without micromanaging each individual stock.
Putting it all together
Stay patient
Buffett’s quote about impatience reminds us that markets often reward those who wait.
Seek opportunity in volatility
Rogers Jr. reframes dips as potential discounts for disciplined long-term investors.
Avoid speculation
Green stays focussed – investing with an emphasis on quality assets while avoiding short term speculation.
Use knowledge to spot potential
Li Ka-shing reminds us that continuous learning can reveal more doors to open.
Set a plan and trust it
Zell’s advice highlights the power of a strategic, long-term investing framework – no need to obsess daily.
Every investor’s situation differs, so it’s worth considering your personal goals, risk appetite and timeframe. If unsure, seeking advice from a licensed financial adviser may help.
However, if you’re ready to shape your future, these five principles could be the nudge you need to begin – or refine – your own long-term plan.
Sources:
1. Forbes, Winning In the Market With The Patience Of The Wright Brothers And Warren Buffett (2018).
2. The Exchange, Overcoming pessimism with patience with John Rogers (2024).
3. Museum of American Finance, The Story of Hetty Green (2022).
4. The Talkative Man, 200 Inspiring Quotes from Hong Kong Billionaire Li Ka-shing (2017).
5. Catherine Robson, Queen of small caps, Wall Street legend Leah Zell (2017).
1 comment on this
Thank you Annabelle, informative and nicely put.