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Time and again, I will be doing further dives into companies that are not widely discussed/under the radar. If you want access to content like this, make sure you subscribe so you don’t miss any release.
Today’s short but moving piece is about three key lessons that have been important to my investing journey and I would like to share them with you.
If there's a dark cloud on a company, I ask myself, are they temporary clouds or permanent? - If temporary, I hold. If permanent, I sell. I bought Zoom Video Communications (Ticker Symbol: ZM) at $66. Soon after, a cyber-security issue developed with the company and I panicked sold at $115. And we all know what happened next. My mistake was, I did not analyse the risk. I just panicked sold. Don’t be like me.
Buy quality and never sell, until fundamental change.
Avoiding the notion of “full positions” - When quality is on sale, average up. If a company is 10% of my portfolio and I love the company and what it does, I can always top up my position if fundamentals get better or if the stock goes on sale, despite improving fundamentals.
These are the three key lessons I have learnt from my journey in the market. I would be adding to the above three, as I go. Shoutout to Matthew Cochrane (@Matt_Cochrane7 ) who influenced some of these lessons.
Would you like to comment on these or share some of your learnings? Please leave a comment