The rules that govern successful long-term investing are easy to understand. Theory is different from practice and things are not always so straightforward.
Following a disciplined process with clarity can help investors navigate challenges that are unavoidable. Our principles foster a framework we use to make decisions that have long-term payoffs.
The simpler, the better. This governs how we operate and invest and is why we only invest in what we understand.
More complex means more error prone.
Much of the investment industry revolves around forecasts and price targets. The predictions mainly serve to generate trading volume and commissions, rather than to help investors.
We value sensibility and endurance over being the smartest person in the room.
There is no shield that protects investors from the unknown.
Shunning uncertainty can provide comfort in the short-term, and rarely pays off over an extended period.
Investing and acting for the long-term in a world with short attention spans is difficult.
Taking cues from people with different interests and incentives can be at best distracting and at worst disastrous.
The best investment strategy is the one that you can stick to. Defining your boundaries can carve the path towards desirable outcomes.
