A big part of my life as an investor intertwines with my spiritual life. As much as investing has been about making the right decisions on stocks, to me at least, investing has been for the most part an inward journey. Sometimes, it does get lonely and it helps if you have a confidante that you can share your ideas with. In my life, my closest confidante is my wife and I can’t say enough how much I have benefited from her presence. However, that journey in investing begins from a place within. This place is a place that houses our deepest darkest secrets and also the place where it contains some eternal truths. This place is likely only accessible by one who practices introspection. This place is the place where one must be completely honest with oneself. Because lies will disintegrate in the face of honesty. And honesty is what an investor needs to become a better investor.
The thing is if you practice an immense amount of introspection and honesty with yourself, more often than not, it would give you the chance to nip a problem in the butt before it arises. Without being aware of these problems, one is likely to make recurring mistakes which drags ones investment results down. You may want to call introspection a meditation or a prayer. It makes no difference at all as long as you get to know yourself better, as long as you can identify your weaknesses, your quirks and idiosyncrasies and then, make an effort to turn yourself around and be a better person, a better investor. To me, this applies not just to investing but to life as well.
This is a ramble of my innermost thoughts. I am not perfect but in the act of putting it out there, I hope to pound within me some of these investing virtues that I strive to have as an investor.
1. I am not Warren Buffett and I don’t think I will ever be like him. I am me and I believe that I am temperamentally suited to buying deep value stocks. As far as my beliefs are concerned, they are based on my positive experiences as a deep value investor.
2. The dominant negative quality of my investing personality is that of greed. I feel greedy when I see a potential 5-10 bagger on the horizon. I will temper that greed by sticking to strict diversification rules. I will temper that greed with introspection. I ask myself questions such as : Am I being greedy on this one? Am I looking for a confirmation on this idea? Am I spending too much time with 1 idea?
3. I will not strive for returns. Striving for returns will make me greedy. I will strive to follow the investing process which I have set forth for myself.
4. I would rather be right on average than wrong on average. As such, a disciplined form of diversification is a must for an investor like me.
5. There is always something to learn from others even if they have less investing knowledge than me. Humility is the key to becoming a learning machine.
6. I moderate my innate biological need to belong by using the net current asset value strategy. As such, I tend towards contrarianism by looking at my investments quantitatively.
7. At all costs, I will avoid large cap stocks which are popular with fund managers. This is part of my strategy for avoiding group think no matter how sexy an idea is.
8. Reminder to myself : Stick To The Process no matter what. I take comfort in the fact that I am buying high probability sub-liquidation value stocks.
If this resonates with you and if the ideas of deep value investing make sense, do subscribe and be logged in for more in depth articles. In any case, may you be blessed with prosperity, health and happiness! Blessings!