From ignorance of ignorance to QGLP

My stock-investing journey of over 30 years has been full of learning - from ignorance of ignorance at the start to now my proprietary investing process QGLP (more about this in a bit). I present 10 key lessons here. 1. Avoid leverage Never borrow to invest in the stock market. Assuming a 1:1 debt-equity, a 50 per cent fall in the market will erode 100 per cent of your net worth and put you out of the game. Avoiding leverage allows you to take the booms and busts of the market in your stride. 2. Have a role model Till 1994, much of my understanding of equity investing was EPS × P/E = Stock price. Looking back, I call this ignorance of ignorance. Then in 1994, I came across Warren Buffett's annual letters. From 1995 onwards, I also started attending Berkshire Hathaway's annual general meetings. This transformed my understanding of equity investing. For instance, I slashed my portfolio from 200 stocks to about 15. It pays off significantly to have a role model early in your stock-market journey. You can always improve upon the learning from them, but at least you get a solid start. 3. Power of compounding The secret to successful stock investing is understan

This article was originally published on August 07, 2020.