Lessons learned

A pal messaged me that she discovered that I am actively investing after chancing upon my posts in G+ community. The message prompted me to look back at my earlier posts a decade earlier. One of the posts are my reflection from various decisions made. As I read through them, I think they are still quite relevant now. So I have decided to re-post them here.

1. When the price shoots up too far from its fundamental without any news, release it.
2. Do homework before investing.
3. Familiar brand does not mean a thing.  
4. Do no rely on others’ analysis.
5. 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.
6. Believe in your own analysis!
7. If valuation is reasonable with sustainable high growth rate, don’t rush into selling.
8. 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.