lundi 29 avril 2024

My investment philosophy

Being an investor for about 16 years (I began during the fall of 2008, in the middle of what was then perceived as the apocalypse), I now trust my judgment more than anything else. 

Here's a bit of my investment philosophy achieved after these years made of hope and despair. 

1- Read as many things and analyze as many stocks as you can to reach as soon as possible the point where you trust your judgment more than any other source of information;

2- Don't trust other investors, don't trust fund managers, don't trust websites except if you triangulate the information by searching many other websites;

3- Invest only in companies that make money and more money year after year (look for stocks where earnings double every 5 years... for instance, between 2013 and 2018, then between 2015 and 2020, and so on...);

4- Invest only in companies where margins are high and ROE is high (if you find a company where margins and ROE are above 20 year after year, you've found a company that is among the 1% of best stocks... however, these stocks are usually pricey);

5- Don't get blinded by investing and money. It's only a tool to reach independance. You'll die and your money won't be useful anymore sooner or later. Also, there is no god, no heaven, no future. So, enjoy life while you're able to enjoy it. Once you're rich, if you're able to help poor people once in a while by buying them food at the grocery store, do it to prove to yourself that you haven't lost your humanity.

6- Look for simple people who don't care too much about money and don't put too much emphasis on investment. These people are more fun. Think about money only when you're alone with your computer and your Excel spreadsheet. Use your money to buy things that make you happy. Do it from 40 years old until the end of your life;

7- Never, ever forget that life brings many unhappy times and unhappy experiences and live your life without waiting for these times to happen. Your portfolio is a tool to be secure and have fun before getting cancer or seeing everyone around you die, one after the other.