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How Mark Zuckerberg Teaches Us To Be Better Investors

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Over the past several years, the world’s most recognizable brands have shifted away from the consumer goods sector and into the technology sector. We tend to focus on the companies we interact with every day, and in the modern world, that includes social media giants like Facebook .

With billions of users across several popular social platforms, Facebook has established itself as the outright leader in this still-growing industry, and the company looks poised to dominate the tech world for years to come.

It’s also convenient that Facebook is led by a man like Mark Zuckerberg, who is both inspiring and polarizing—a combination that has created some of the world’s most successful entrepreneurs. Since the earliest days of Facebook, when the site was being run out of a Harvard dorm room, Zuckerberg has not been afraid to butt heads with anyone.

That attitude helped the college dropout create one of the most powerful business empires in the world, and along the way, his personal net worth swelled to more than $63 billion.

Being the founder and largest shareholder of Facebook certainly helps with this, but Zuckerberg is an interesting rarity among the mega-moguls because he is not really known for his investing skills. Sure, Facebook has made a number of brilliant strategic moves over the years, but individual investors tend to turn to the likes of Warren Buffett for inspiration first.

But is this fair? Has Zuckerberg actually given investors a solid game-plan for success?

Indeed he has! Today, we’ll be digging through some classic Zuckerberg quotes to uncover the founder of Facebook’s three-step blueprint for investing success.

1.       Take Risks

Every investor takes on risks—that’s just the nature of the beast. Some investors prefer to minimize risk, opting instead for stable returns with limited downside. Others see things differently, and Zuckerberg is definitely one of those people. It’s safe to say that if Zuckerberg were managing his own portfolio, he’d be taking a look at more volatile, high-growth stocks like AMD (AMD - Free Report) and Micron (MU - Free Report) .

 

2.       Invest in Emerging Markets

As an investor, there’s nothing more frustrating than hearing about a great emerging market just after the majority of its growth is done. Perhaps Zuckerberg is telling us to take a look at the Emerging Markets Index Fund (EEM - Free Report) , or maybe we should target specific emerging markets like the India Index Fund (INDA - Free Report) .

 

3.       Stability Takes Time

Reputations are not earned in a matter of months. If you want to be known as a strong investor with consistently stable returns, that’s something that takes years and years to develop. For example, our proven Zacks Rank stock-rating system has more than doubled the S&P 500 since 1988.

Want to shape your own legacy as a successful investor? Check out our latest ideas for profiting from the Zacks Rank below.

 

Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!

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