“The things that scare you only make you better and stronger.” — Octavia Spencer.
Investing is a masterclass in uncertainty. To win, you need a system — one that anchors you in what’s knowable and shields you from what isn’t.
Over the years, I’ve studied legends, tested ideas and made my fair share of mistakes. These 20 lessons are the distilled wisdom of that journey — practical principles that go beyond returns. They’re about clarity, courage, and doing the hard things when they matter most.
If I had to teach my kids to invest, I’d start here.
Here are 20 Powerful Insights from My Investing Journey:
- Think in decades, not days: Time arbitrage creates long-term opportunity. Owning stocks the way you own your home lets compounding do the heavy lifting when you’re not watching the ticker.
- Buy quality, sleep well: Own world-class businesses with deep moats. If they print cash and can’t be easily copied, you’re on the right track.
- Price still matters: Even the best company is a pass at the wrong price. A margin of safety turns volatility into opportunity.
- Let compounding compound: Re-invested earnings growing at high rates create the “snowball” Buffett loves—and so do I.
- Own businesses, not tickers: My quick gut-check: Would I gladly own the entire company if the market shut for 10 years?
- Circle of competence – If I do not understand how it makes money and the financial, I swipe left. Simple
- Back the right, people – Integrity, rational capital allocation and shareholder candour trump charisma.
- Check the Moat – Durable competitive advantages and pricing power beat flashy tech that’s easy to replicate.
- Financial pulse – A healthy balance sheet, rising free cash flow and self-sustainability are non-negotiable.
- Find a growth runway – Secular tailwinds like innovation and secular trends keep the compounding engine running.
- Don’t abandon valuation discipline – Maintain discipline around valuation — buy quality at reasonable prices.
- Ignore Macro Noise – I let economists entertain, not influence, my buy list.
- Avoid speculative Fear Of Missing Out (FOMO) – Hot trends usually enrich brokers, not you.
- Stop over-diversifying – Fifteen great names beat fifty lukewarm ones. Concentrate your portfolio on well-researched and high-conviction ideas.
- Tame your emotions – Have a written process. A written playbook keeps fear and greed in check.
- Watch for cognitive traps –Always look for what you might be missing. Seek opposing views.
- Cut Losers early – Small paper cuts beat gaping wounds. Be decisive about cutting losses quickly.
- Ride winners – Let multi-baggers run. Don’t sell the flowers to water the weeds. Allow your winning investments room to grow.
- Study your mistakes – Post-mortems are free education. Be honest and learn from them.
- Blank-sheet review – If I wouldn’t buy it fresh today, why still hold it?
“Life shrinks or expands in proportion to one’s courage.” — Anaïs Nin
Great investors aren’t fortune tellers. They’re truth-seekers. They admit when they’re wrong, stay humble and constantly update their thinking.
Success in investing — like in life — comes down to discipline, resilience, and the courage to act when it’s hardest.
Awet Ghirmay, Head of Investment Research
If you want to learn more about this topic, please find the link here.
More information about our fund can be found here: Hargreaves Lansdown or AJ Bell
Risk warnings
The value of investments and the income derived from them may fall as well as rise. You may not get back what you invest. This communication is for general information only and is not intended to be individual advice. You are recommended to seek competent professional advice before taking any action. All statements concerning the tax treatment of products and their benefits are based on our understanding of current tax law and HM Revenue and Customs practice. Levels and bases of tax relief are subject to change. This blog is based on my own observations and opinions.
