I've been investing professionally for a few years now.
Over the last decade, I've made tons of mistakes.
Here are 10 essential investment lessons I wish I knew 10 years ago:
Over the last decade, I've made tons of mistakes.
Here are 10 essential investment lessons I wish I knew 10 years ago:
1️⃣ Let your winners run
Selling your winners too early is a big mistake.
Selling companies that are doing well and purchasing ones that are faring poorly is like watering the weeds and cutting the flowers.
Selling your winners too early is a big mistake.
Selling companies that are doing well and purchasing ones that are faring poorly is like watering the weeds and cutting the flowers.
2️⃣ Don't invest in disruptive sectors
Disruption is the worst enemy of every quality investor.
Invest in companies that will still be in business 10 years from now.
Disruption is the worst enemy of every quality investor.
Invest in companies that will still be in business 10 years from now.
3️⃣ Run your own race
Don't compare yourself to others.
Every investor is unique and has its own goals.
Don't compare yourself to others.
Every investor is unique and has its own goals.
4️⃣ Focus on the moat
A sustainable competitive advantage is essential for quality investors.
You avoid a lot of value traps when you only invest in wide moat stocks.
A sustainable competitive advantage is essential for quality investors.
You avoid a lot of value traps when you only invest in wide moat stocks.
5️⃣ Valuation matters
Even the most beautiful companies can be terrible investments if you pay too much for them.
Try to buy wonderful businesses at fair prices.
Even the most beautiful companies can be terrible investments if you pay too much for them.
Try to buy wonderful businesses at fair prices.
6️⃣ Focus on management
You don't want to invest in companies where management puts their own interest above the one of shareholders.
Focus on companies with high integrity.
You don't want to invest in companies where management puts their own interest above the one of shareholders.
Focus on companies with high integrity.
7. Never panic buy or sell
Always try to stay rational.
The worst time to make an investment decision is when you're panicking.
Always try to stay rational.
The worst time to make an investment decision is when you're panicking.
8. Always take responsibility
Never blame others or external factors for your investment mistakes.
Focus on process over outcome and take responsibility.
Never blame others or external factors for your investment mistakes.
Focus on process over outcome and take responsibility.
9. Be patient
The best investors trade very little.
Don't be in a rush to get wealthy.
The best investors trade very little.
Don't be in a rush to get wealthy.
10. Focus on the fundamentals
Most stock prices fluctuate with more than 50% each year.
But this doesn't mean the value of the company fluctuates with 50% per year.
Always focus on the evolution of the intrinsic value of the companies you own.
Most stock prices fluctuate with more than 50% each year.
But this doesn't mean the value of the company fluctuates with 50% per year.
Always focus on the evolution of the intrinsic value of the companies you own.
That's it for today.
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