Some random thoughts on investing in stocks.
A thread mostly repeating the same thing over and over.
A thread mostly repeating the same thing over and over.
The goal of investment is to find situations where it is safe not to diversify.
You only need to find one great company every few years to beat the market and to change your life. Investing is a game of quality over quantity. Wait for your pitch and swing hard.
10% of successful investing is finding a great investment. The other 90% is not selling them.
Selling for quick 5-10% gains can give you a good income but holding for 500-1,000%+ gains is how you build wealth.
The longer I invest the more I realize you get 1-2 really great opportunities every few years. The rest of the time is spent wondering if you will ever get another great opportunity again and convincing yourself to own mediocre opportunities while you wait.
In bear markets, stocks return to their rightful owners.
A big mistake investors make is feeling they should always be buying/selling something. 99% of successful investing is learning, thinking, and waiting.
The worst part of bull markets is the rise of inexperienced people educating other inexperienced people.
10% of successful stock picking is picking great stocks. The other 90% is not selling them.
To be a disciplined investor you have to be willing to stand by and watch other people make money on things that you passed on
Unless you buy a stock at the exact bottom (which is next to impossible), you will be down at some point after you make every investment. Your success entirely depends on how dispassionate you are towards short term stock price fluctuations. Behavior matters
Spending money to show people how much money you have is the fastest way to have less money.
The best investors in the world have more of an edge in psychology than in finance.
Not selling your winners is the hardest part of the game.
If you want a stock you own to go down, recommend it to a friend or family member
Successful investing is hard work because it means disciplining your mind to do the opposite of human nature. Buying during a panic, selling during euphoria, and holding on when you are bored and crave action.
Discipline is when your long-term goals change your short-term behavior.
The goal of investment is to buy the things everyone else will want to own later.
Short-term investors often create the best opportunities for long-term investors.
Itโs very hard to go bankrupt when you donโt have any debt
You'll never be criticized by someone who is doing more than you. You'll always be criticized by someone doing less.
Most investors won't like your investment idea until after it doubles.
You will buy stocks you shouldnโt. You will sell winners too soon. You will hold losers too long. But whatever you do donโt blame others. When you blame others for your investing mistakes it proves you didnโt do enough of your own work. Own your mistakes so you learn from them.
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