When it comes to investing there are Do’s and Don’ts.
I would like to share few of them today with you.
Do’s:
1. Invest in just a few wonderful businesses that you fully understand.
2. Create a patiently monitor a watchlist of companies you had like to invest in.
3. Stay calm and logical knowing you believe in the intrinsic value of the company for the long term.
4. Align your money with your values, invest in businesses you want to see in the world your kids will inhabit.
5. Look for businesses that have a bright long-term future.
6. Own business that have at least a 10 years proven track record of success.
7. Know what you are buying and confidently understand how it operates.
8. Look for companies that process a unique competitive advantage.
Don’ts:
1. Do not invest in a lot of different stocks just to diversify your portfolio.
2. Do not invest on impulse based only on hear-say or advice from others.
3. Do not react emotionally to the market and try to get in and out with the masses.
4. Do not buy in just for dividend knowing the management isn’t putting money back into the business.
5. Do not invest in companies that have a large amount of debt.
6. Do not invest in businesses that do not have enough data to go see how things are going.
7. Do not invest in industries you have no experience with or understanding of.
8. Do not invest in companies that can be easily duplicated by competitors.