Today I'd like to share a handful of rules I try to invest by. These rules have more to do with my investing mindset than technical indicators or particular strategies, and they have served me well. They highlight qualities such as patience, humility, and the joy that comes from owning a small part of a great company.
Investing means ownership. Investing means saddling up for the long haul. Investing means believing in a company's leadership, vision, values, and prospects. Let's not forget that investors are not merely playing the odds, trying to win at a guessing game. In fact, it's quite the opposite. Investors purchase part of a company because they want to feel the pride that comes with owning (and prospering from) a piece of a business that shapes the world we live in.
I think that someone's portfolio says a lot about who they are and what they believe. It speaks to their vision for the future, and highlights their hopes for humanity. As investors, we choose to stand behind the companies who will make the most impact on a piece of the economy we are passionate about.
Without further ado, and in no particular order, here are some thoughts about how I try to invest:
Invest in the change I wish to see in the world.
Believe in long-term optimism for humanity.
Recognize when companies are creating entirely new industries.
Invest in my "dream job" companies.
Identify innovations that align with society's future needs.
Consider social impact as part of an investment's returns.
Don't worry too much about timing. It's okay to be late to a great party.
Invest in the companies and industries I know well.
Remember there are often many winners in an up-and-coming industry.
Take comfort in knowing that a few big winners can account for the vast majority of my returns.
Be the biggest fan of the companies I invest in.
David Gardner, co-founder of The Motley Fool, once said something to the tune of, "The stock market always goes down faster than it goes up, but it always goes up more than it goes down." This truth, combined with my overall long-term optimism for humanity, helps me follow a steady plan regardless of short-term market conditions or my own investment flops.
What about you? What are your investment rules or mindsets? I'd love to hear your thoughts.
Disclosure: This blog represents my personal opinions. I am not a financial advisor. Do not buy or sell securities based solely on what you read on this website. Seek opinions from a qualified financial professional before making any financial decisions. See the Terms of Service for more details.