Sharing my Investing Principles 🔑
I wrote these when I first started direct equity investing and occasionally revisit them, time and again.
Writing these principles have helped me avoid major pitfalls and stay true to what I think is my investing ideology.
👇🏼
These principles are based on the lessons I have learnt by observing the giants and titans in the industry.
From Lynch, to Buffett, to Munger, Druckenmiller, to Klarman, to Pabrai and many others.
Principle # 1
Never Lose Your Capital
Principle # 2
Choose small consistent profits over random large gains
Principle # 3
Invest in sound businesses and not the heat of the market
Principle # 4
A sound investment with no change in underlying fundamentals should be held for forever
Principle # 5
Business research is a key pillar in the decision to invest
Principle # 6
We never take extremely large positions
Principle # 7
Investment time horizon is a key factor that dictates real wealth creation
If I have to boil down my investing to 7 rules, then these are it.
Highly recommend writing your own principles, if you have just started investing.
It will help you stay true to your ideology and ground you if you ever deviate from it.
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