By Yen Yee
Somewhere in this world, there will always be people looking for the holy grail of investing: beating the market. In case you have no idea what it means, it simply refers to a superior investment methodology that when applied, will make one lots of money and be ahead of everyone else.
As cliché as it may sound, such a thing does not appear in reality; and investors often tend to spend too much time chasing after this fallacy to the point where a great deal of opportunities are wasted during the period.
That said, if you examine the track records of the investing legends who have consistently outperformed the stock market as a whole, you would see some common traits that anyone can adopt easily to their own investment portfolios.
Without further ado, let’s look at 3 ‘secrets’ to beating the market:
Secret #1: Invest in what you know
When it comes to picking out some of their best investments, investment gurus like Warren Buffett and Peter Lynch have always stuck to what they know or can easily understand.