10 Things I Wish I Knew When I Started Investing: 1) Stock prices & business profits can become detached in the short-term, but are 100% linked in the long-term. Mental Model:
2) 2/3rds of businesses underperform the market -- it's not a coin flip. 40% accuracy is great 3) Good CEOs don't want their stock price below $10. If it's there, it probably deserves to be there. 4) Invest in the very best companies you can find.
5) Allocation is a great risk-reduction tool. If you like it, but it's very risky, just invest less. 6) You are NEVER late on the best growth stocks. I thought I missed $AMZN in 2010, $V in 2012, and $SHOP in 2018. I didn't.
7) Recurring revenue makes growth almost automatic. Only invest in companies with lots of it.
8) Pay up for quality. It's worth it. 9) Winners tend to keep on winning. Buy companies that have already beat the market soundly. 10) Learn to separate the signal (revenue, earnings) from the noise....cause there's A LOT of noise on Wall Street.
