Thread by @RamBhupatiraju

🔟Lessons from my biggest Winners & Losers over time.

Sharing with few FinTwit friends
cc: @saxena_puru @TMFJMo @FromValue @dhaval_kotecha @reshoftc @richard_chu97 @adventuresinfi @7Innovator @investing_city

Open Q to all : What are 1-2 lessons from your biggest winners/losers?

Positions listed above (not recommendations)

Winners : $LULU $ISRG $V $MELI $SHOP $W $PINS

Losers : $GILD $STP $SDRL & $RIG

Another mistake we often do is selling Winners and great Co's often too soon, to lock in the profits.

Below is my thread on that topic, but it's only going thru those experiences that improved my process and enabled me to achieve better returns later.

https://twitter.com/RamBhupatiraju/status/1228343360437604353?s=20

Identifying great Co's, doing qualitative/quantitative research (incl studying Competition, trends..), having a thesis, conviction to hold them (as they grow & the thesis plays out), thru the daily market noise & qtrly hits/misses and hopefully multi-baggers are all important.

However buying/holding great Co's is only one part of the equation. The next step is your overall Portfolio Management.

Few important ones ⬇️⬇️

1⃣ Portfolio Concentration vs (over) Diversification.

2⃣ Weightage of positions based on conviction & opportunity. Adding/reducing position sizes based on important news.

3⃣ Ensuring positions are not lingering in Portfolio due to biases like anchoring, status-quo, endowment bias etc...

4⃣ Correcting mistakes faster and improving the process.

5⃣ Cash levels in the Portfolio based on Market conditions.

6⃣ Is the new capital mostly going into existing positions or new ones?

7⃣ Dealing with extreme over & undervaluation of existing holdings (or ignoring them in few exceptional cases)..

8⃣ Having your balance with greed (in good times), fear (in bad times), accepting & taking advantage of Market volatility, always focusing on the long-term while navigating the short-term.

9⃣ Check-ins if your Goals/strategies/actions/personality are all aligned.

🔟Check-ins if your long term Portfolio results are meeting your objectives & if it's all worth it🙂(for individual investors, who can instead save lot of time/effort while getting Mkt returns with ETFs)

We would all be awesome investors if we knew that we know now, about 10 years ago, but it obviously doesn't work that way.

✔️Don't do dumb things.
✔️Don't make All or None bets.
✔️Don't blindly follow the crowd.
✔️Make yourself accountable for your decisions/actions/results.

Accept mistakes and learning as part of the game, and minimize regret. Do an objective review of the mistakes and just improve the process for the future.

Hope this was useful.

/END.