Sharing your investing strategy/philosophyHello all,
I’m a recent Irregular member after lurking for a month or so. I’m also a PU subscriber, so happy to share any insight from that and appreciate all the wonderful people that share their experience.
On that note, I thought it would be helpful to have a thread that discusses investing strategy/philosophy, especially for individual stock selection. I have all the ‘long term/retirement’ accounts funded and going well (I think anyway), have my feet wet in crypto, and have recently turned attention to learning how to better select individual stocks, and trying to learn things like options, etc.
I’m willing to bet the more seasoned and savvy members would have a lot to contribute towards helping to better understand topics like:
How do you decide when/how much to invest into a company’s stock? Say if you have $5k, do you spread it evenly amongst 10 companies?
What technical analysis / charts do you study before investing?
What does it mean to be a fundamentals / value investor?
What’s your take on when to exit a position?
Do you buy whatever a particular subscription says to? Or do you buy what you ‘know’?
These are just some of the examples of things we could all share information/insight on in this thread. Hopefully it proves useful to those that read it. Thanks for contributing!
This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.
Great idea, I hope some readers will chime in!
Personally, I try to think in percentages — I usually start with a tiny position in stocks I think have potential, like 0.25% for small and volatile companies or 0.5% for bigger or more stable ones, and build that up with additional buys as I learn more about the company and gain confidence in their potential. The mindset is to build a portfolio of stocks that I can still own 20 years from now, letting the best ones compound value and culling the ones where I’ve made a mistake or changed my mind about the potential.
Last year was unusual and led to taking some partial profits as stocks hit crazy valuations, but with companies where I see a reasonable likelihood of continued strong growth over the next five years I’m likely to hold most of my shares even if I reduce risk a bit by shaving off some profit.
I use stop losses as a signal to re-evaluate a company, but do not automatically follow them.