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1/ 2020 was the year I started my investing journey. Time will tell, but it was one hell of a ride.
I think it's necessary to take a few hours to reflect on the good & the bad that happened along the way.
One things for sure, let's enjoy the ups and downs that come
Thread.
I think it's necessary to take a few hours to reflect on the good & the bad that happened along the way.
One things for sure, let's enjoy the ups and downs that come
Thread.
2/ Beginning:
First stock purchase of my adult life was $BABA. Had known the business from Uni where we had done case studies. Did some DD, and bought it, in March @ $220
Sold at $170 in March, didnt want the loss to be 'sunk cost'.
Conviction above all else.
First stock purchase of my adult life was $BABA. Had known the business from Uni where we had done case studies. Did some DD, and bought it, in March @ $220
Sold at $170 in March, didnt want the loss to be 'sunk cost'.
Conviction above all else.
3/
After capitulation, thought that stock mkt will crash, so I shorted the "dead cat" bounce. Confidence faded away w time. Also experimented w options.
Felt stupid when I closed the positions. Currently, they are the only losing positions in my port'.
Mkt always humbles you.
After capitulation, thought that stock mkt will crash, so I shorted the "dead cat" bounce. Confidence faded away w time. Also experimented w options.
Felt stupid when I closed the positions. Currently, they are the only losing positions in my port'.
Mkt always humbles you.
4/
The first I stock bought after capitulation was $BABA. Why? I knew it the best. Perhaps it is like an old flame, and you want to 'relive' the 'good times'
It was also time when I began reading a few investing books that was recommended on Twitter.
Books = knowledge = power
The first I stock bought after capitulation was $BABA. Why? I knew it the best. Perhaps it is like an old flame, and you want to 'relive' the 'good times'
It was also time when I began reading a few investing books that was recommended on Twitter.
Books = knowledge = power
5/
1. Common Stocks and Uncommon Profits (Phillip Fisher)
2. W.B. & the interpretation of financial statements (David Clark & Mary buffett)
3. The most important thing: Uncommon thoughts for the thoughtful investor (Howard Marks)
4. Fooled by Randomness (Nassim Nicholas Taleb)
1. Common Stocks and Uncommon Profits (Phillip Fisher)
2. W.B. & the interpretation of financial statements (David Clark & Mary buffett)
3. The most important thing: Uncommon thoughts for the thoughtful investor (Howard Marks)
4. Fooled by Randomness (Nassim Nicholas Taleb)
6/
Book 1 showed me the power of growth investing
Book 2: good for new investors to understand terms
Book 3: Second order thinking
Book 4: That success is a function of luck. Ignoring luck's role in your success is the recipe for failure.
Book 1 showed me the power of growth investing
Book 2: good for new investors to understand terms
Book 3: Second order thinking
Book 4: That success is a function of luck. Ignoring luck's role in your success is the recipe for failure.
7/
Armed with these books, I felt ready to start my investing journey. I was lucky to be in, at the start of the bull mkt.
I was also thankful to follow some very good growth investors on Twitter. They led me to $LVGO, $SE and even $CRWD at double digit prices.
Luck.
Armed with these books, I felt ready to start my investing journey. I was lucky to be in, at the start of the bull mkt.
I was also thankful to follow some very good growth investors on Twitter. They led me to $LVGO, $SE and even $CRWD at double digit prices.
Luck.
8/
For many weeks, I had done little due diligence, buying into those stocks which I 'felt' was good & borrowed the conviction of others
While they were good stock purchases, luck is ever present
Never underestimate being the right place at the right time.
For many weeks, I had done little due diligence, buying into those stocks which I 'felt' was good & borrowed the conviction of others
While they were good stock purchases, luck is ever present
Never underestimate being the right place at the right time.
9/
I knew that was unsustainable. Also understood the power of note taking, and bought a notebook to write. Very crude thoughts about companies operate
Committed myself to daily note taking, and that allowed me to get into $ROKU, $TDOC, $AYX and many others
Pen your thoughts.
I knew that was unsustainable. Also understood the power of note taking, and bought a notebook to write. Very crude thoughts about companies operate
Committed myself to daily note taking, and that allowed me to get into $ROKU, $TDOC, $AYX and many others
Pen your thoughts.
10/
Managed to fill the note book to the brim. Thankfully, found the online notebook in OneNote. Many other software to do the job.
Began documenting my thesis and deep-dives into my invested companies.
Your brain is not a hard drive.
Managed to fill the note book to the brim. Thankfully, found the online notebook in OneNote. Many other software to do the job.
Began documenting my thesis and deep-dives into my invested companies.
Your brain is not a hard drive.
11/
All this time, I had maintained a few twitter lists for me to read every morning and night. Its not the healthiest, but the curated feed gave me many, many good nuggets of information, and allowed me to gain more knowledge
Curate your content stream.
All this time, I had maintained a few twitter lists for me to read every morning and night. Its not the healthiest, but the curated feed gave me many, many good nuggets of information, and allowed me to gain more knowledge
Curate your content stream.
12/
From there, many valuable accounts emerge, offering great thoughts on investing in general as well as other topics. Podcasts were a routine for me on friday nights. Threads were the best format (imo) to consume the information
Expand your worldview.
From there, many valuable accounts emerge, offering great thoughts on investing in general as well as other topics. Podcasts were a routine for me on friday nights. Threads were the best format (imo) to consume the information
Expand your worldview.
13/
Over the months, many stocks went up greatly, but many stocks went 'dipping'. Having aggressively deployed money (savings too) into the mkt, I found myself financially stretched and was unable to 'buy the dip' many a time.
Control your finances.
Over the months, many stocks went up greatly, but many stocks went 'dipping'. Having aggressively deployed money (savings too) into the mkt, I found myself financially stretched and was unable to 'buy the dip' many a time.
Control your finances.
14/
I had regular monthly contributions, and perhaps the continuity made me feel like I 'had' to buy stocks every month. In reality, while DCA is a good strategy, its always good to leave some spare cash in event of a broad market correction.
Patience pays.
I had regular monthly contributions, and perhaps the continuity made me feel like I 'had' to buy stocks every month. In reality, while DCA is a good strategy, its always good to leave some spare cash in event of a broad market correction.
Patience pays.
15/
The stock mkt reached the moon, and carried the valuations along with it. Should we stop buying? We can never know. But it is prudent to have a lesser fixed contribution in stretched times like this.
Prudence.
The stock mkt reached the moon, and carried the valuations along with it. Should we stop buying? We can never know. But it is prudent to have a lesser fixed contribution in stretched times like this.
Prudence.
16/
Looking back at the stocks I bought this year, they are mostly companys that I understand, and it aligns with what trends I think are at the forefront of the '20s. Some are also companies I used or have experienced the industry
Invest in your circle of competence.
Looking back at the stocks I bought this year, they are mostly companys that I understand, and it aligns with what trends I think are at the forefront of the '20s. Some are also companies I used or have experienced the industry
Invest in your circle of competence.
17/
Looking forward, I think I will do more of the same. Find great companies having great tailwinds achieving great returns run by great management, and patiently enter a position, for the long term.
Think long term. In Everything.
Looking forward, I think I will do more of the same. Find great companies having great tailwinds achieving great returns run by great management, and patiently enter a position, for the long term.
Think long term. In Everything.
18/
There are many more lessons that I've missed, but over time, these would inevitably surface like a memory of the cringest thing you did. You can't ever forget it, but it won't be at the top of mind.
Greatest lessons are the ones you cannot forget.
There are many more lessons that I've missed, but over time, these would inevitably surface like a memory of the cringest thing you did. You can't ever forget it, but it won't be at the top of mind.
Greatest lessons are the ones you cannot forget.
19/ End
With 90 minutes to the new year, I find myself fortunate that I am part of FinTwit (albeit small).
Outside of Twitter, I am happy with my job, my love life, my family and my friends.
Perhaps, that would also make me a happy investor too.
Happy new year!
With 90 minutes to the new year, I find myself fortunate that I am part of FinTwit (albeit small).
Outside of Twitter, I am happy with my job, my love life, my family and my friends.
Perhaps, that would also make me a happy investor too.
Happy new year!
