Hard work is a good thing … unless it’s not necessary.

When I started my career as a floor trader on Wall Street at the age of 20, I thought that the key to getting ahead was always working hard. I often tried to look busy — even when I wasn’t. It wasn’t until later on that I realized hard work doesn’t always equal success…

What Makes a Good Investor

After 35 years of watching world-class traders make money, I noticed something: Hard work doesn’t necessarily mean more money.

However, there were three qualities that successful investors seemed to embody.

Good investors:

1. Aren’t tempted to invest every day. They pick their spots and don’t invest every day the market is open. They know to invest only when the odds of success are greatly in their favor.
2. Have even temperaments. They don’t get overly excited when the market goes their way … and they don’t let it get to them when it doesn’t. They do their research and make purchases based on analysis. They don’t let the daily ebbs and flows in the market get to them.
   
3. Are disciplined. They stick to an approach that’s based on sound logic — one that’s withstood the test of time.

Even for the best investors, it can be hard to keep a cool head. So how do you — a Main Street investor — overcome the urge to go against your better judgment?

My Alpha-3 Approach

When it comes to investing, it is vital that you follow an approach. You need one in order to eliminate guesswork and home in on great opportunities.

I developed my Alpha-3 Approach over 35 years. It’s based on three basic principles. And any company I’m interested in must pass each of these filters:

1. It must participate in a $100 billion industry.
2. It must be run by a rock star CEO.
3. It must have a stock that’s mispriced.

That’s it. This approach has helped me target financially sound companies trading at bargain prices for decades … simply and easily.

Thanks to my Alpha-3 Approach, I can work smarter — not harder.

All my best,

Charles Mizrahi

Editor, Alpha Investor Report