If you are a beginning investor what do you need to succeed? The short answer is perspective and patience. But the devil is in the details.

Perspective comes with time. But if you are starting out how can you possibly gain the perspective. Borrow someone else’s. There are gobs of great investors that will tell you how great they are on their websites. A few great investors have written books that are worth reading. Joel Greenblatt and Seth Klarmann come to mind. Spend some time reading and digesting the methodology. Pick it a part and decide what works for you and what doesn’t.

There are not as many great deals in the stock market right now as there were in March. I have said this before, and it is doubly true now. That doesn’t mean there aren’t any, they may be harder to find. And they disappear faster. So if you are just starting out, or don’t have a lot of capital to invest yet. This is a good time to develop your investing system, which means you can’t just rely on books. Do you like the idea of buying a dollar for 50 cents. Then the value investing approach will fit you well. Do you believe in Charlie Munger’s advice to buy great companies at fair prices? Follow that path. There are various methods for making money.

Discover what your competitive advantage is. Do you have some expertise that gives you a unique perspective on an industry. Start with that industry. Don’t assume you don’t have one because you are just starting out or have just a little bit to invest. Your small portfolio may be your biggest advantage right now.

A good thing to be watching right now are special situations, particularly going private deals that involve reverse splits. But you have to ready to go. If you find a great deal don’t hesitate. Earlier in the week a reverse split came up with Fansteel Inc. (FELI) but by the time I learned about it the price had already zoomed up and it was no longer a deal worth investing in.

And be patient. Don’t assume you have missed the boat because the market has risen so quickly. The market ebbs and flows in fits and starts. There will be other deals that come along.

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