Notes to self regarding investing

I felt that I should write down some things I have learned about investing so that I should never stray from my ideals. This is mainly intended for myself as I treat my blog as a personal notepad and I find that I remember things better if I write them down.

1.) Intuition should be balanced by facts in the purchase of any security, emotions are of no importance when buying a stock.

2.) The general public is fickle leading to large variances in stock price, never buy when a stock is experiencing a huge rally in a day because more often than not it is too good to be true. Instead try focusing on companies that have consistent growth in their fundamentals.


3.) There are no magic bullets in the stock market, if a stock seems to have risen too high then it is too high. Better be safe than sorry and wait for more information.

4.) Today's market is very volatile with a lot of "mini bubbles" happening over the course of a few months. Predicting the highs and lows of these bubbles is hard.

5.) Keep (daily if possible) notes of recommendations even of you do not buy or sell any stock. This is so that the past is put into proper focus because hindsight is 20/20.

6.) I am not a day trader, I invest long term in good companies that have a SOLID business model and good prospects for growth.

7.) Investing in foreign countries is lots better than investing in the Philippines.

8.) Try looking at stocks in developing countries that have good governance/corporate cultures.

9.) Knowledge is the key to beating volatility (in the long run).

10.) Greed or the acquisition of wealth is what motivates me. Being greedy is ok but to a point, always remember time is your friend. I can afford to go long.

Last: I can afford to wait but not to lose money.