5. When buying Stocks, search for bargains among Quality stocks
6. Buy (Intrinsic) Value, not Market trends or the Economic outlook
7. Diversify
8. Do your Homework
9. Monitor your investments
10. Don't panic
11. Learn from your mistakes
12. Think clearly
13. Acknowledge that outperforming the Market is a difficult task
14. An Investor who has all the answers doesn't even understand all the questions
15. There's no free lunch
16. Do not be fearful or negative too often.
Of course, not all of these pts are suitable for everyone. One of the best aspects of investing is to read/learn widely, pick the stuff that applies to your situation, and make your own process and improve it as you go along.
/END
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My first 1⃣0⃣0⃣ bagger. Finally.... Love you $LULU 💕
I'll not pretend to be an expert on 100 baggers (this is a nominal win, read Pt11), but will just share some general and some specific lessons I came across thru my holding of $LULU.
12 Lessons from the 12 year journey. ⬇️
1⃣Be open minded : Good ideas can come from anywhere.
Fresh from reading Peter Lynch's "One Up On Wall Street" back in Dec'08 I wanted to pick one branded athletic retailer. $NKE $LULU $SKX might have been the choices.
I read up few free articles on Motley Fool and elsewhere and the basic analysis was good enough for me to get started.
What attracted me to $LULU back then was
-Yes, it's catchy name to begin with
-Small but a leader in a growing Healthy Lifestyle trend
-Founder led
My biggest losers of all time (on % basis or opportunity cost) and what I learned from them.
"Experience is what you get when you didn't get what you wanted."😂
Most of these Co.'s, I got in either due to low valuation (which ended up being Value traps) or envy out of missing their previous gains (while not knowing enough about the quality/sustainability/future outlook).
Except for a couple of cases ( $SDRL $UA), I also didn't know enough about the Management teams. Even in those two cases, the founders mismanaged the strategy/business later.
I love the combination of
✔️Picks & Shovel plays in the Digital Transformation, led by innovative leaders
✔️The best Co's in this space delivering important solutions while leveraging the best of SaaS Business models.
✔️LT view, buying early, buying slowly, stomach for Volatility
1⃣The ability to offer innovative/critical/useful solutions to Customers by leveraging the latest technologies
2⃣Developing an effective recurring revenue and high Gross Margin business
3⃣Landing/retaining/expanding Customers
4⃣Efficient S&M/R&D for sustainable growth
Co.'s that can do these effectively and consistently will reward shareholders over the long-term.