What are your Investment Rules?

[kiora]

"3 companies that fit the “quality” moniker

For Ninety One, quality means a long-term sustainable competitive advantage, sourced from innovation."

https://www.livewiremarkets.com/wire...LITY%20MONIKER

“We think there are a handful of companies that can sustain their competitive advantages for far longer than what the market appreciates.
"These are typically businesses where the primary source of their competitive advantage comes from intangible assets. These are innovation-driven businesses with very strong R&D pipelines",

[kiora]

Warren Buffett's favorite book, 'The Intelligent Investor,' is still the 'best book about investing' 75 years later

https://finance.yahoo.com/news/warre...141755562.html

"It's never been easier to be an investor, but it's never been harder to be an intelligent investor because there's so much propaganda coming from Wall Street. There's so much garbage on social media. There's so much pressure on your smartphone to trade, trade, trade and to follow the crowd. And it's easier than ever to make stupid mistakes"

"we should understand that a stock is a share of ownership in a business enterprise"

"And it either will generate a growing stream of cash over time, or a shrinking stream of cash."

"because we live in this networked, online, totally wired world, we have to be more on our guard against the bad influences of other people and technology than ever before. And that makes his principles even more powerful."

"You can beat the professionals, but not if you play their game. One of the most commonly understood statistics about the stock market is that 80% of professional fund managers underperform the market. So why would I even want to play that game?"

"It’s not by trading more, but by trading less and investing more smartly.

[kiora]

Even today,how many times has someone brought up their/others losses in 1987 as a reason to not invest in shares?

Lynda Moore says moods and emotions impact money decisions. Understanding them helps explain choices, and clarify whether they're wise

https://www.interest.co.nz/personal-...-understanding

"“Money behaviour and financial decisions are sometimes - rarely - about money” (David Krueger, A New Money Story)."

"Greed, emotional contagion, and peer pressure trump logic. It’s not that we are stupid, we just aren’t very well regulated, and we make mistakes."

"The Auctioneer is Professor Max Bazerman at John F Kennedy’s School of Government, and the bidders are investment specialists and economic gurus. Who I really think should know better and have more financial control than us mere mortals in the finance world."

[kiora]

The art of the loss: Getting better through investing mistakes

Successful money managers are good at assessing probabilities.Few decisions are black or white.Success is often the returns less the sum of the errors
" Each one is usually a combination of analytical, narrative, behavioural and psychological components, plus sheer bad luck."

https://www.sharesight.com/blog/the-...rm=Read%20more

"The opposite is true in investing, where crashes are guaranteed"

‘Good judgement comes from experience, and experience comes from bad judgement’.

"
Whilst fundies love talking about their ‘process’, the secret sauce that helps them pick big winners and escape disaster, often backed by 80-slide presentations, there’s not much evidence that it actually works."
"
" you cannot invest without losing money, even if only on paper. Don’t be afraid of that."

"The aim is to stay in the game by not making mistakes that will remove you from it. Then, when you have accumulated more experience and confidence — one is a function of the other — and more money, you can start making bigger calls

"The questions should centre around what we missed rather than where others failed us."

"Losing 93% on Strathfield Car Radio felt more psychologically damaging at the time than selling Cochlear at $86.08, as we did in 2015. Now I feel we had it the wrong way around.

Strathfield was a run-of-the-mill investing error driven by a management team that was as overcommitted as we were. Having produced a five-bagger in 4.5 years, Cochlear didn't feel like an error when we sold it. History suggests otherwise."

Revisit your errors
Look for new lessons in them, too.
There were technical errors and confirmation bias, but, on reflection, I now believe our central error was more basic; we misunderstood the business model.

Go easy on yourself
We are all only human and errors are what make us.

Stocks we sold too late. There is a unique unhappiness about buying a company, watching the investment case come apart and failing to act quickly enough to limit the damage. This section endeavours to answer the question: In the face of changing facts, why didn't we change our minds?
Stocks we sold too soon. These are the ones that got away. They may not be the most emotionally scarring errors, but they can be the most expensive. Underestimating value and selling too cheaply are the biggest mistakes of all.
Stocks we should not have bought at all. It is one thing to lose money on a stock by selling too early or too late. It is another to do so with a company you later realise you should never have bought at all.
Stocks we should have bought but didn't. The previous categories deal with errors of commission — decisions that subsequently proved wrong. There is another category of mistake — failing to act when we should. This section concerns our mistakes of omission."

[kiora]

How to create a multi-generational wealth plan

https://www.sharesight.com/blog/mult...rm=Read%20more

Education, legacy planning and family governance structures.

"Is it a means to provide for education, support charitable causes, or maintain family-owned businesses?"

"Develop a family governance structure"

Constitution:a written document that outlines your family’s mission, values and guidelines for financial management and decision-making. It can also specify rules regarding family business involvement, distribution of assets and philanthropy."
"succession plan. The plan should outline who will manage the family’s wealth, businesses and trusts"


"using a digital tool like Sharesight’s portfolio tracker allows you to track all your investments in one place, from stocks, ETFs and funds to cryptocurrency and even unlisted assets such as real estate or collectibles. Sharesight also enables you to securely share portfolio access with family members (plus track multiple portfolios within the family), with the option to grant different levels of access based on their needs. This is a good way to ensure that family members have real-time visibility into the family’s financial status. The ability to run and download a range of reports detailing the portfolio’s performance, asset allocation and tax implications also makes it easy to keep family members informed."

[kiora]

"One of Australia’s best stock pickers shares what’s at the heart of every great investment"

"The overriding philosophy is to invest in quality businesses at attractive prices.
Digging into what's a quality company, almost always, the quality company's got to have a product or a service that really resonates with the customer base.

It should have a really high-value proposition. That might help the customer save money. It might allow the customer to make more money in its business. It might bring enjoyment to a customer's life, but generally speaking, at the heart of every great investment, you're going to have a great product or service.

So the investment philosophy, that would be the first point - is to analyse the quality of the product or service that the company sells. You'd probably be looking at the addressable market. So a large addressable market is ideal, just it gives the company a long runway for growth. It also means that it can generate organic revenue growth, which is much more preferable to needing acquisitions to deliver that growth.

And then also just having the ability to deliver earnings in excess of what's priced in by the market. That's ultimately what's going to drive the stock price higher is earnings positive earnings revisions, earnings being delivered better than what's priced in"

" investing in companies that are easy to understand, long growth runways, buy and hold "

[kiora]

"Trust in quality

Investors can do a lot worse than picking quality growth stocks and staying the course. View from a personal experience
https://www.livewiremarkets.com/wire...THE%20INSIGHTS
"These companies also make a mockery out of investors' obsession with trying to find ten-baggers among cheaply priced alternatives.

The share market's seldom highlighted secret is the highest and most consistent, sustainable returns have come from these highly priced, High quality achievers -- for the past 15 years."

All these outstanding ASX-listed achievers share some basic similarities, including consistent spending on R&D from a market leadership position."