Richard Branson turned 65 recently and is undoubtedly one of the most inspirational and successful investors of our time. With a net wealth figure approaching $8 billion, there are so many principals that every person can learn from him. Here are 10 principals that investors can take from the great man:
Keep it simple!
"It is vitally important to present a clear, concise plan that investors can easily understand and repeat to their own people. In the first meeting, avoid overly complicated, numbers-laden presentations."
Share market investors: If you can't understand the company's product, don't buy it!
START
"You don't learn to walk by following rules. You learn by doing, and by falling over."
Some of our greatest lessons have been learnt the hard way by investing in poor companies like Lynas Corporation Limited (ASX: LYC) and Quickflix Ltd. (ASX: QFX).
You don't have to be a mathematics professor to do well
'Although my spelling is still sometimes poor, I have managed to overcome the worst of my difficulties through training myself to concentrate.'
Peter Lynch had a exceptionally successful investing career by investing in companies that owned stores he liked shopping in. Sometimes a great investment is a company with great service, like Burson Group Ltd (ASX: BAP).
Love doing it
'I don't think of work as work and play as play. It's all living.'
If you don't enjoy researching companies then maybe you should leave it to the professionals at The Motley Fool to recommend companies for you.
Don't be pressured to buy if you're not 99% sure
"Business opportunities are like buses, there's always another one coming."
Unsure of part of the business strategy? Not sure how the company quantifies its forecasts? Steer clear of investing in companies you aren't really confident about.
Stick in there
"In a company's first year, your goal should be simply to survive, and this will likely take everything you've got. No matter how tired or afraid you are, you have to figure out how to keep going."
This isn't directly related to investing, but don't be put off if you pick up a faling Woolworths Limited (ASX: WOW) or disappointing BHP Billiton Limited (ASX: BHP) with your first pick and it doesn't work.
But iterate your processes
Learn from your investments, record why you bought the company and if it doesn't go as well as planned identify if it was due to a flaw in your research.
And focus on your strengths
"Once you know what your own motivations and aspirations are, talk to your … colleagues about theirs."
Get a kick out of investigating oil and gas companies like Woodside Petroleum Limited (ASX: WPL)? Focus on becoming an expert on it and surround yourself with experts in the sectors you don't know too well.
Attempt to capture global trends and disruptors
'I've had great fun turning quite a lot of different industries on their head and making sure those industries will never be the same again, because Virgin went in and took them on.'
Disruptors can be fantastic investments. On the ASX XERO FPO NZ (ASX: XRO) and Nearmap Ltd (ASX: NEA) are disrupting their respective industries and should reward investors over the long term.
Think outside the box
By starting ventures in complementary industries, Branson created a network of businesses that reinforce one another. Don't diversify by investing in 10 different mining services companies!
