Investment nuggets captures some interesting investment lessons, following them would definitely help us become better investors. The nuggets are captured in sets of ten.
Below are some of my favorite investment nuggets. Some are mine and some are not.
Investment Nuggets: First Set
- Be fearful when others are greedy and be greedy when others are fearful
- Only risk what you are ready to loose – don’t invest the money that you might need for someone or something important such as your kid’s education, daughter’s marriage etc.
- The best investment that you can make is, in YOU. So, read as many books as possible, and equip yourself with necessary knowledge to become an investor
- A disciplined investor would enter markets when they are bottoming and exit when they are on top – but, that’s the toughest ting to do
- Experts can be wrong too – Do your own research before investing
- Speculating is not a good approach to building wealth
- Failure is prerequisite to learning
- Everyone is a millionaire on hindsight – so don’t crib for lost opportunities, its never late to start and there is always an opportunity
- Patience and perseverance are the two most important virtues of investment
- Start with small and equal amounts in max five companies, to test your hypothesis, at least for 3 years. Once you find your analysis and hypothesis is giving better returns than Index (Nifty / Sensex) , then you can increase your stake or apply the hypothesis to other potential winners.
I’ll elaborate each of the above nuggets and publish few more investment nuggets in my coming posts. Please feel free to contact me if you need more info on the above nuggets.
Happy learning & Think before you act.