1⃣ Selling good businesses too early
2⃣ Going down the Quality curve
3⃣ Waiting for a little lower price to buy
4⃣ Failing to consider overall market change and its impact
5⃣ Not experimenting enough in the portfolio
6⃣ Having a very large cash allocation
7⃣ Holding on to the non-performers for too long
8⃣ Thesis change, market view changes
9⃣ The need to be Contrarian
🔟Focusing on macro
I'm guilty of making most of these mistakes in the past.🤦♂️
Investing advice is very subjective as it depends a lot on the specific investor's goals, capabilities, time horizon, risk tolerance etc. but these are some great lessons for business focused long-term investors in individual stocks.
My fav points. Pt1 ⬇️
Pt2. ⬇️
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4. Avoid the Latest Fads 5. Consistency 6. Bucking the Trend 7. Pay No Attention to the Science of Wiggles (Charts) 8. Do Not Try to Predict Short-term Ups and Downs in the Market 9. Pulling the Flowers and Watering the Weeds 10. No Derivatives
My fav parts in the thread below. Comments in ( ) are mine.
1. Know the Facts (understanding your Companies well).
Reading articles from the actual period (instead of books written after he was already widely famous) provides more interesting details on how his investing process evolved over the decades..
->Pure Balancesheet & Valuation based investing(50s/60s)
-> Purchases based on Intangibles/Brands & Moats (70s)
The Current Investing Landscape (article from Oct 2018, further elevated now)
Some good quotes
"Investment theses were formulated that described only the quality of the business and its growth prospects, but made no mention of the price and why it offered an attractive return."
Pat Dorsey's "The Five Rules For Successful Stock Investing" is probably a Top 5 investing book in my opinion (for long-term investors in individual stocks).
Here's an excellent summary by Amey Chheda @FinMedium 👏