My Investing Philosophy

For me, investing is something I enjoy but it also a means to an end. That is, it provides a source of revenue that allows me to attain my goals and live as I choose. My investing philosophy has definitely changed since I made my first investments and I suspect it will continue to evolve as I evolve. For now, this is what guides me when it comes to investing.

• Buy and hold: Invest in top quality companies that are leaders or up and comers in their respective industries, have a bright future and long runway to grow their revenue and earnings. Hold onto these companies for a long time to give them the time they need to reach their full potential. This also minimizes transaction fees and taxes.
• Be patient: Sometimes doing nothing is better than investing in a company just for the sake of doing something. Do not try and make your fortune with one big roll of the dice.
• Focus on the business: Understand the business and how it will grow its ability to generate earnings. The share price will follow the performance of the company.
• Avoid unforced errors: You can’t be right with every company you invest in, but you can avoid preventable mistakes.
• Minimize risk through diversification: Be well diversified with different size companies from different sectors, with a mix of high growth companies and slow and steady growers that pay a dividend. Do not put all your eggs in one basket.
• Trust, but verify: Think for yourself. Ignore group think. No matter the source of a recommendation, perform your own due diligence before investing in any company. Knowing the company reduces the risk of a making a bad decision and provides the confidence to hold onto the company during a downturn.
• Have pride in ownership: Ask yourself if you would be proud to own this company.
• Play your game: Don’t worry about what others are doing or what others want. Define your game and play to your strengths. Afterall, its your money, to achieve your goals, and live the life you choose.