Saturday, March 04, 2006

India Value Investing Conference; Jan 25, 2006

On a personal note:

There are a few things that I have learnt about investing from my own experience and from talking or reading about successful investors. There is nothing original in anything that I’m just going to say – its just that I’ve been a very slow learner.

1. Investing requires persistence, patience and practice.
2. Investing is like being in a fog and seeing things that others can’t. You have to be comfortable with vague outlines and imagine them to be real and then bet that your imagination is right.
3. Profits abound where wisdom prevails. Wisdom states that the first step toward making money is not losing it. And yet countless clever people forget this seemingly simple rule.
4. “You know less than what you think you do.”
5. “Try to focus on the facts, not the stories.”
6. “More information does not necessarily mean better information.”
7. “Look for people who disagree with you.”
8. “Don’t attribute your failures to bad luck; acknowledging mistakes and examining them are necessary to improving performance.”
9. “People often anchor on the irrelevant, so its important to have a valuation framework and the process and the discipline to stick to it.”
10. Always think probabilistically and judge future outcomes by how statistically likely they are.
11. “Don’t value something more, simply because you own it. “
12. Always think critically and play only when the odds are in your favor and lastly Never, never stop learning.

Thank you T-BoneJr and Dr. Brian Zen for this link.

To read more:

All the best,
Dah Hui Lau (David)

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