Investing can appear daunting for people who are just starting out. For such people, the tactics and ideas of Wall Street's most successful investors offer valuable lessons. These lessons can be applied by anyone in their own investment journey. These investment titans have spent decades mastering the intricacies of the market and have shared their knowledge through books, interviews, and public appearances.
 

While it is essential not to replicate their exact investments, learning their principles can help you bring your own investment strategy to fruition.

• Understanding risk and reward balance is important for successful long-term investing.
  

• Diversification can reduce risk while maintaining steady returns in unpredictable markets.

• Starting early and maintaining patience significantly elevates long-term financial outcomes.

• Focus on investments you know inside out to avoid unnecessary risks and losses.

Benjamin Graham: Focus on value, not predictions

One of the enduring investment insights from investment legend Benjamin Graham, known as the "Father of Value Investing," is focusing on value rather than predicting the future. Graham believed that attempting to forecast market movements is fraught with uncertainty. Instead, investors should spend time spotting undervalued assets and maintaining a margin of safety by buying when prices fall below intrinsic value.

This approach safeguards investors from unexpected downturns and maximises long-term gains. Another key insight from Graham is the importance of determining whether you are an enterprising or defensive investor. Enterprising investors seek undervalued stocks and are more hands-on, but defensive investors favour more passive, conservative approaches. Whichever your style is, the goal remains the same: reduce risk and maximise returns over time.
 

John Bogle: Keep costs low and think long-term

Founder of the Vanguard Group and pioneer of the index fund, Bogle emphasised simplicity and low-cost investing. His strategy was to create investment vehicles that track broad market indexes, outperforming other actively managed funds in the long run. His belief was that costs eat into investor returns, so keeping expenses low is important for maximising gains.

He also advised against holding too many different funds. Why? According to him, this led to overcomplication and diluted returns. Bogle’s focus on long-term investing remains the foundation of his investment philosophy. Patience and consistency are more valuable than trying to time the market for short-term gains. His advice for those new to investing is loud and clear: choose funds with low costs, stay diversified, and think long term.
 

Warren Buffett: Buy what you know and start early

Warren Buffett, called the ‘Oracle of Omaha’, is perhaps the most famous investor of all time. His investment strategy is based on a simple principle: buy what you know. Rather than chasing the latest market trends, Buffett advocates for investing in companies you understand through and through. This helps you to make the most informed decisions and avoid risky investments in industries that you do not understand.

Buffett also stresses the importance of starting early. The earlier you begin investing, the more you benefit from compound interest. This allows your wealth to grow exponentially over time. Discipline, patience, and a long-term perspective are crucial here. Buffett famously advises against selling stocks too quickly, even if market fluctuations cause fear and uncertainty. By sticking to quality investments and staying the course, you will build wealth gradually.
 

George Soros: Adapt to uncertainty and embrace risk

George Soros, well-known for his aggressive short-term investment strategies, emphasises the unpredictable nature of the market. His approach is rooted in his idea of reflexivity, according to which the market prices and the fundamentals of assets influence each other in a feedback loop. Soros believes that markets are inherently unstable, and successful investors need to constantly adapt to changing conditions.

Unlike investors like Buffett and Bogle, who prioritise long-term stability, Soros focuses on recognising opportunities in a volatile climate. He accepts risk as an unavoidable part of investing, and advises others to embrace uncertainty rather than fear it. Being flexible and prepared to adjust the strategy as conditions change is vital to navigate the fast-paced financial markets of today.
 

Carl Icahn: Take control and stay involved

Known for his hands-on approach to investing, Icahn has earned his reputation as a corporate raider. His philosophy rests on the idea that you should take an active role in managing your investments. Whether by influencing the direction of companies or making strategic trades, he believes in being deeply involved in the assets one owns. He asserts that one of the best ways to maximise returns is by directly engaging with the businesses you have invested in.

Icahn also warns against blindly following popular trends, which is the basis of herd mentality. Instead, he tells investors to focus on their own investment strategies and goals, even if it means going against the crowd. Investing requires conviction and a willingness to make bold moves, but it should always be backed by thorough research.

If you are looking for safe investment option, then you can consider investing Bajaj Finance Fixed Deposit. With a top-tier AAA rating from financial agencies like CRISIL and ICRA, they offer one of the highest returns, up to 8.60% p.a.

Now that you understand that your savings account is not really saving your money, you can instead opt to invest your surplus funds. While savings are safer than investing, they do not result in wealth creation over the long term. If you invest your corpus, you can enjoy the following benefits:

• Investments work on the principle of compounding and reinvesting to bring you a better potential for higher returns. In simple words, investing can help you grow your wealth over time and achieve long-term financial goals like planning for retirement and buying a home.

• Contrary to popular belief, not all investment products come with mandatory lock-in periods and limited liquidity. Investment instruments like liquid mutual funds and ETFs offer easy liquidity to investors who wish to redeem their corpus at any given time to meet financial emergencies.

• Lastly, curating a diversified portfolio of stocks, mutual funds, ETFs, gold, and other assets allows you to capitalise on both tax benefits and inflation-beating returns. Diversification helps mitigate investment risk, while allowing you to optimise returns from various asset classes to ensure zero purchasing power compromises.