Stage 2 - 2004 to 2008 - The Calm before the Credit Crunch
Starting to get a rough idea about what was going on. Discovered Value Investing. First Leveraged Trades.
Stage 3 - 2009 to 2010 - The Credit Crunch Important Lessons in the Merciless side of the Markets and the usefulness of Shorting.
That’s it for Part 2 - I have Parts 3 and 4 in Draft form but they need quite a bit of work so if all goes to plan I hope to issue Part 3 next week. Cheers, WD.
7 Comments
Paul Hunt
16/2/2018 07:35:59 pm
Fascinating stuff and probably a fairly common path among private investors. We are all learning all the time otherwise you are a fool. As you know I am a conviction share holder and only hold about 10 sharers because i like to follow them closely every day. I am trying to think long term and cut down my trades. Even when individual shares are going sharply up or down i do not sell unless the story has changed even if they reach what many people see to be toppy valuations. In most cases I have been wise to hold on. Also if they drop sharply on low volume I keep them. I have quite a tight set of criteria and have only bought one new share this year but topped up on three existing shares although I am always looking for new shares. My criteria is now very conservative to what it once was. Close or making profits. Low PEG. No oils or miners. No Israeli or Chinese companies or companies that are heavily involved in these countries. These are my safety factors in the event of a downturn. Not as good as heavy diversification. No spreadbets - always lost on these.
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WheelieDealer
20/2/2018 08:56:27 pm
Hi Paul - thanks for the feedback. I wonder how similar my 'Route' has been to others - I guess the obvious link is how we make a lot of mistakes early on and correct those as time goes on but of course some of us learn this faster than others (I was most definitely a Slow Learner !!). As I hope to have put across (or maybe it is in later Parts) although I have been "learning all the time" there have been clear periods where I have been flatlining and not really making progress on the learning front - in many ways this was part of my inspiration for these Blogs because I suspect many people get in this kind of 'funk'. It is interesting that you are moving more to a model where you hold Quality Stocks for the Long Term - that is something I have been doing as well in recent years and trying to cut down on my chopping in and out - it might well be that more money can be made from frequent Trading but on the flipside it needs 'work' and I like the relaxed approach and letting my Stocks do their thing. Those are good rules you have and very similar to my own although as per the list on the WheelieBin page I have quite a few more !!
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roy bailey
16/2/2018 08:40:51 pm
Hi Pete, I have been reading your blog for 6 months now as I am new to investing / trading and just wanted to say thank you for sharing your thoughts and skills as you do. I have found this site very helpful and wish you the very best with your future investing.
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WheelieDealer
20/2/2018 08:59:44 pm
Hi Roy,
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Paul Hunt
17/2/2018 01:41:15 pm
Did not have time to complete my comments last night. Interesting to know your only 'professional training' was with a guy where you knew more. I am totally self taught over a period of about 20 years. My main learning in the early days was the business section of the Daily Telegraph which I reads religiously. The Questor section of tips made me think about the criteria I would use for investing. In the last 10 years I have gone from very risky investing style to a more low risk style. I have read the Shares magazine and Investors Chronicle in the last few months out of interest but i don't think I will continue as they are time consuming and I don't get that much new stuff from them. . However I find bulletin boards, The Small Caps Report from Paul Scott and Graham Neary and the twitter group of predominantly private investors the best source of information on shares I have identified as being of more investigation.They give a good view of why they might be good to buy or bad to buy and sometimes on the same page. I also look at all companies reporting in 6 weeks time. I keep an eye on the short tracker website as I won't invest in a share with a lot of shorts on it. Everyone must adopt a style that fits their risk and ambitions profile. You learn more from your losses than winners!!!
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WheelieDealer
20/2/2018 09:08:02 pm
Hi Paul (again),
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Yuvraj Verma
28/3/2021 04:35:40 am
Thanks you for sharing your expereince, very valuable.
Reply
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