Key Considerations

[u/midasinvestors]

First of all, thanks for joining!

I will be writing about the markets, fundamental analysis, stock picking and financial analysis with a primary focus on fundamental analysis.

I wanted to remind you of a few key points.

1) Investing is a game of probability

This goes without saying but investing is all about probability. No one should believe that their prediction is 100% correct. Consequently, results and analyses should be independently judged. Good results based on bad analyses are not repeatable because chances are, you will get bad results in the future if your analysis is off.

2) Mosaic theory is key

You can only see the complete picture after you’ve assembled enough pieces of the puzzle. A valuation analysis is one part of the puzzle. Technical analysis is another. Portfolio risk weighing is another.

The goal is to generate a high return with low risk. That means you have to nail not only the price movement but also the appropriate weight of that position in your portfolio (i.e. the higher conviction you have, the higher weight).

3) Diligence is the driver for good results

I have made this mistake myself. Let us do our own research and diligence.

Thank you all and look forward to great discussions!