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Some reflections on investing for just under 3 years.
1. Start early. I'm 40 & wish I started doing this earlier.
2. Understand yourself & your volatility tolerance
3. Just as there is a range of stock/bond combos there can be growth/other criteria tradeoff in your portfolio
1. Start early. I'm 40 & wish I started doing this earlier.
2. Understand yourself & your volatility tolerance
3. Just as there is a range of stock/bond combos there can be growth/other criteria tradeoff in your portfolio
4. Don't try to apply your worldview or style of investing on people it is not suited for.
5. Find a community of investors who share your approach.
6. Develop a structured process that you apply to every decision.
Keep it simple and iterate after you make mistakes.
5. Find a community of investors who share your approach.
6. Develop a structured process that you apply to every decision.
Keep it simple and iterate after you make mistakes.
7. You will make mistakes. Learn from them.
8. You can get lucky. Don't mistake it for skill.
9. Stay humble, or get humbled.
8. You can get lucky. Don't mistake it for skill.
9. Stay humble, or get humbled.
10. Have a high quality filter that matches your goals.
11. A significant number of people don't have the right profile to benefit from picking individual companies.
This could be psychological, behavioural, time pressure, or the opportunity cost of doing the work
11. A significant number of people don't have the right profile to benefit from picking individual companies.
This could be psychological, behavioural, time pressure, or the opportunity cost of doing the work
12. Have a open mind
Realise you are dealing in probabilities not certainties
Model the downside risk to your decisions as well as the upside
13. Trading is not investing. Different approaches are needed
14. Do nothing unless compelled to do something if your thesis is intact
Realise you are dealing in probabilities not certainties
Model the downside risk to your decisions as well as the upside
13. Trading is not investing. Different approaches are needed
14. Do nothing unless compelled to do something if your thesis is intact
15. The greatest rewards come from understanding the rare occasions (1, 2, or 3 times a year)
when you are presented an opportunity with asymmetrical upside
Take advantage of them when they occur
Patience is an important skills. Cultivate it.
Investing can change your life!
when you are presented an opportunity with asymmetrical upside
Take advantage of them when they occur
Patience is an important skills. Cultivate it.
Investing can change your life!
16. Weekly news is better than daily
Financial TV "news" is mostly entertainmen & is rarely worth your time. Turn it off
17. Keep learning. You are never finished
18. Be optimistic
19. Keep a long term perspective
20. Consider doing the opposite of what your emotions say
Financial TV "news" is mostly entertainmen & is rarely worth your time. Turn it off
17. Keep learning. You are never finished
18. Be optimistic
19. Keep a long term perspective
20. Consider doing the opposite of what your emotions say
