Here are TEN things you should know before you start investing:
1. Don't bring a knife to a gunfight.
There has never been a better time to be a retail investor.
Here are a list of free resources all investors should know:
There has never been a better time to be a retail investor.
Here are a list of free resources all investors should know:
https://twitter.com/SteadyCompound/status/1478720485319917579
2. Learning how to value a company.
A good business may not be a good investment if bought at the wrong price.
Valuations is like a compass to figuring out your entry point.
Check out my primer on valuing a company:
A good business may not be a good investment if bought at the wrong price.
Valuations is like a compass to figuring out your entry point.
Check out my primer on valuing a company:
https://twitter.com/SteadyCompound/status/1492444904760524806
3. Knowing who to learn from.
The internet provides a wealth of information.
Knowing who to learn from is crucial, and I had to figure it out the hard way.
Here are the top 5 investing legends to learn from:
The internet provides a wealth of information.
Knowing who to learn from is crucial, and I had to figure it out the hard way.
Here are the top 5 investing legends to learn from:
https://twitter.com/SteadyCompound/status/1485922414219382785
4. Respect risks, volatility, and market cycles.
The stock market oscillates between extremes like a pendulum.
Learn more about managing risks from Howard Marks:
The stock market oscillates between extremes like a pendulum.
Learn more about managing risks from Howard Marks:
https://twitter.com/SteadyCompound/status/1482474732796665861
5. For most investors, staying invested is the best strategy.
Timing the stock market is a fool's errand.
To obtain returns on the markets, you must first be invested.
Miss the 10 best days and your returns will be halved.
Timing the stock market is a fool's errand.
To obtain returns on the markets, you must first be invested.
Miss the 10 best days and your returns will be halved.
6. Invest like businessmen.
When you buy stock, you are buying part of an enterprise.
Whether it's 10 shares of Facebook or several million shares.
Consider it no different than if you were buying the company in its entirety.
When you buy stock, you are buying part of an enterprise.
Whether it's 10 shares of Facebook or several million shares.
Consider it no different than if you were buying the company in its entirety.
7. Require a margin of safety.
When building a bridge to support a five-ton truck, build it so that it can support ten tons.
Likewise, valuation is a highly subjective analysis with a wide margin of error.
Buy with a margin of safety to protect your capital.
When building a bridge to support a five-ton truck, build it so that it can support ten tons.
Likewise, valuation is a highly subjective analysis with a wide margin of error.
Buy with a margin of safety to protect your capital.
8. Know the limits of your circle of competence.
If you are not familiar with FDA approval process or the science behind a drug, you should probably steer clear of pharmaceuticals.
To realize better turns than others, you must have better knowledge than others.
If you are not familiar with FDA approval process or the science behind a drug, you should probably steer clear of pharmaceuticals.
To realize better turns than others, you must have better knowledge than others.
9. Know when to sell.
Ideally, the time to sell is...almost never.
But there are 3 instances where we might need to sell:
•Our analysis is wrong
•Prospects of business have deteriorated
•There's a better opportunity
Ideally, the time to sell is...almost never.
But there are 3 instances where we might need to sell:
•Our analysis is wrong
•Prospects of business have deteriorated
•There's a better opportunity
10. Learning from mistakes.
Mistakes are inevitable. The key is to recognize them quickly and learn from them.
Four common types of mistakes:
•Mistakes of commission
•Mistakes of omission
•Price anchoring
•Overconfidence
Mistakes are inevitable. The key is to recognize them quickly and learn from them.
Four common types of mistakes:
•Mistakes of commission
•Mistakes of omission
•Price anchoring
•Overconfidence
Enjoyed the thread? Follow me @SteadyCompound
I write about investment concepts, business breakdowns and growth philosophies.
I write about investment concepts, business breakdowns and growth philosophies.
If you have enjoyed this thread, you're gonna love my newsletter where I curate 3 ideas on investing and growth philosophies.
Every week.
steadycompounding.com
Every week.
steadycompounding.com
If you like to speed up your learning process...
Check out my newly launched...
Investing Course for Beginners!
You'll learn to:
• Find good investments
• Analyze/ value companies
• Stay Zen during market crashes
I look forward to seeing you:
zeninvesting.gumroad.com/l/investingaca…
Check out my newly launched...
Investing Course for Beginners!
You'll learn to:
• Find good investments
• Analyze/ value companies
• Stay Zen during market crashes
I look forward to seeing you:
zeninvesting.gumroad.com/l/investingaca…
• • •
Missing some Tweet in this thread? You can try to
force a refresh
