Saturday, January 3, 2015

Brief Investment Thought Process Compilation

Below is a brief "back of napkin" brain dump of personal thoughts on investing written from my vantage point as an individual investor. I will explore the topics written here in more depth over time. Investing should be business like and process driven to some degree. At the same time it is not a completely scientific endeavor as it involves a degree of creativity and artistry. I have presented my handwritten notes as opposed to a flow chart to make the point that the process is not linear-neat-tidy as well as illustrate the interconnectedness of many elements that go into the effort and process. The best investors I know of, run at higher and more elaborate thought processes than others. They typically possess common sense and can quickly boil down complex ideas to salient points. They are also calm but passionate and have typically worked at the craft for years to decades. In short, they can "see around corners." Business-investing knowledge and thought processes are cumulative in nature and are built over long periods of time measured in years to decades. Building involves trial-error and growth-set backs that form the basis for mastery of a craft. The notes below are my own. My actual topic list is much longer. I recently sat down for a few minutes to scratch out what thoughts, processes, beliefs and concepts come to mind. They have evolved over time and will continue to do so.Investing is ultimately an internal journey as the markets typically do not know if you are invested and do not care. Longer term skill development and thought processes are more important than short term outcomes which is often not well understood by investors.

No comments:

Post a Comment