Financial investment, especially in highly volatile markets like stocks and Bitcoin, is not simply about “copying homework” from successful investors. Many people think that just by following the strategies of Warren Buffett or Elon Musk, they can become wealthy. However, in reality, this is much more difficult due to several very specific factors that simple copying cannot bring about success.
1. Knowledge and Experience are Distinctive Factors
• Just like in art, even if one can see every brushstroke of Leonardo da Vinci or every dance move of Yang Liping, not everyone can recreate them. In investing, each decision of seasoned investors is based on decades of experience and extensive knowledge of the market. They not only understand the numbers but also sense the market's psychology, something new investors find hard to grasp.
2. Psychology and Mental Strength
• Financial investment is not just a numbers game; it's also a psychological battle. Even with clear and rational strategies, implementing them in practice is a monumental challenge. When the market declines sharply or Bitcoin suddenly loses value, successful investors like George Soros or Buffett know how to maintain their stance, patiently wait for opportunities, and not easily be swept up by the crowd. This requires mental strength and discipline that not everyone possesses.
3. Risk Handling Skills and Asset Management
• A core factor that contributes to the success of seasoned investors is their risk management and asset allocation skills. They never put all their money into one stock or one wave of Bitcoin. Every time they make a decision, there is a calculation of risk levels, potential losses, and contingency plans. Blindly copying without a clear understanding of risk management strategies can lead to significant losses.
4. Understanding the Context and Market Fluctuations
• The financial market is constantly changing. The decisions of large investors are often based on their deep understanding of the context and macroeconomic factors. A successful strategy at one point in time may no longer be relevant as the market changes. Copying without understanding the context of the market is like chasing a shadow, not truly staying in touch with the situation.
5. Uniqueness and Flexibility
• Each investor has their own style and strategy, tailored to their personal situation. Warren Buffett has a long-term investment strategy focused on companies with core value, while Elon Musk is more daring, willing to take risks to seize emerging technologies. Copying someone else's strategy without adjusting it to fit oneself is like wearing a shirt that doesn't fit. The market requires flexibility and the ability to adjust strategies when necessary.
6. Theory vs. Practice
• Just like art students who know the theory but cannot paint like a master, in investing, many understand the theory but easily fall into psychological traps and herd behavior in practice. Seeing a skilled investor's strategy is one thing, applying it effectively is another. The gap between theory and practice is one of the reasons why copying strategies from masters often does not yield the expected results.
7. Differences in Goals and Investment Time Horizon
• Each investor has different goals and time frames. Warren Buffett invests long-term, willing to hold a stock for many years. Meanwhile, a new investor may seek quick profits and lack the patience to wait. The differences in investment goals and asset holding periods make it hard for copying strategies to yield the desired results.
Conclusion
Just like trying to run as fast as a professional athlete or dance as beautifully as a top artist, copying investment strategies does not always lead to success. Investing is a personalized journey where each individual needs to develop analytical abilities, a strong mindset, and a unique style. Successful investors do not succeed because they copy others, but because they build their own path, learn from masters but know how to adjust it to fit themselves and their circumstances.
Finally, as the saying goes, “The teacher opens the door, but you must enter by yourself” - referring to the strategies of large investors is just the first step; real success comes when you have the confidence in yourself and develop an independent investment style.
