- When the price shoots up too far from its fundamental without any news, release it.
- Do homework before investing.
- Familiar brand does not mean a thing.
- Do no rely on others’ analysis.
- When fundamental of company is not doing well, look hard into the cause and divest the shares instead of hoping for turn-around if there are no such signs.
- Believe in your own analysis!
- If valuation is reasonable with sustainable high growth rate, don’t rush into selling.
- Valuation is not everything.
Reading the above 8 points, I would say points 2, 4 and 6 are similar which is really important. Due diligent is definitely one of the factors that contribute to success in investing. Good decision is made when one has a good knowledge of the company.
Points 3, 5, 7 and 8 have stuck with me for some time and I will continue to remember them.
Point 1 seldom happens but if it happens now, I know what I will do.