Thread by @stocknladdr

20 New Year resolution ideas for better Investing

Friends, It’s that time of the year when we make plans for the New Year Resolutions. Here are 20 ideas for better investing
Happy Investing and Advance New Year 2020 wishes

1. I will remember the adage “If you don’t know where you are going, you will probably end up somewhere else” and so will clearly write down my investing goals that I wish to pursue in the stock market.

2. Before I invest in a security, I will write down my investing rationale on a piece of paper to check if I have the necessary clarity of thought and also to help me validate again if my investment rationale is still compelling enough

3. I will only invest in shares of companies whose business model I can easily understand and is well within my circle of competence.

4. I will generally invest with a long term orientation of few years at least as I am quite confident that over the long term, the returns from owning quality businesses acquired at reasonable valuations are fairly predictable

5. I will always insist on a sufficient “Margin of Safety” while making an investment as the return of capital is equally important to me than the return on my capital

6. I will not involve in the foolish and ultimately a futile pursuit of buying a security at an absolute low and selling it at an absolute high as this can be done consistently only in our dreams.

7. I will strive hard to have an independent line of thinking while analyzing businesses for investing and hence will try to read more annual reports than analyst reports.

8. Mistakes are great teachers and will strive hard to learn lessons from my past investment mistakes. Even better, I shall try to learn from others mistakes as it is highly unlikely that I can commit all the mistakes by myself and more importantly, it is a lot cheaper !

9. I will rigorously study and analyze companies to find good businesses to invest at attractive valuations and in case I don’t find any, will happily let my money remain in the bank than investing for investing sake

10. I will strive hard to continually increase my investing capital by spending “what is left after saving” rather than saving “what is left after spending”

11. I will reduce my time spent watching 24 x 7 financial news and instead increase my time spent reading good financial books (at least 1 book a month).

12. Just as I don’t check the price of my house every other day, I will refrain from checking the price of my portfolio every day as the prices in the short term are a reflection of the whims and fancies of thousands of participants reacting to information / misinformation

13. I understand that risk is not a random number or a Greek character but a permanent loss of capital and hence will not try to speculate, guess or take a long shot as they all invariably tend to miss their mark

14. I will constantly remind myself of the cardinal principle of reversion to mean as well as the story of cycles in the stock market because a bull market will follow a bear market and then followed by another bull market

15. I will not fall prey to greed and other “get rich quick” schemes as I understand that successful investing needs time for the power of compounding to work its magic

16. I will choose my investing role models and friends wisely as my choice of investing heroes and the friends I hang out with have a significant impact on the type of investor I will eventually turn out to be

17. I will strive hard to increase my circle of competence by gaining proficiency in one additional area every year as a larger circle of competence widens the areas from where I can search for profitable investing ideas

18. I will eat healthily, exercise regularly and sleep soundly as I understand a healthy body is necessary for sound investment decision making and more importantly health is wealth

19. Just as a fisherman puts a small part of the daily catch back into the sea as a token of thanks, I will give back to the society at least a small part of what I make from the stock market as a token of my thanks and gratitude

Your time is limited , don't waste it living someone else's life.
Explore, Dream, Discover.

Hope you find this thread useful as much as i enjoyed writing it !!!