My most precious investment lessons are:
- Being contrarian in my approach towards stock or sector selection.
- Focusing on the price I pay for a business rather than categorise companies as high-quality or low-quality.
- Try and control my emotions while making an investment decision.
Over the years, I have made several mistakes that have moulded my investment philosophy, such as:
- Inability to understand market cycles and its impact on companies.
- Excessive leverage can set you back a long time.
- Underestimating the margin of safety while buying a stock.
- Inability to predict the future with any certainty.
Over time, I have tried to improve my understanding in all these areas while building a portfolio.
This article was originally published on August 08, 2022.