Deep diving into your investment

Deep diving into your investment

Are you willing to DEEPLY understand a business?

 

"You should understand every aspect of one business as if you own 100% but you don't actually run it. This causes you to be desperate to understand every aspect to protect your investment. That will give you a sense of a disciplined approach. That's how you truly understand business and investing." Li Lu

Li Lu goes on to say: "Investing is about predicting the future, and the future is inherently unpredictable. Therefore the only way you can do it better is to assess all the facts and truly know what you know and know what you don't know. That's your probability edge. Nothing is 100%, but if you always swing when you have an overwhelmingly better edge, then over time, you will do very well."

Over my years of investing, I have found that the only way to really hold on to my investments was when I really understood the business.

Currently many of my investments are doing very well, but there are 2 companies that are not performing (share price wise),but because I understand the business model and fundamentals, am willing to continue holding the investment and monitor the fundamentals (not the share price).

Are you willing to deeply understand YOUR business?

Let's do a deeeeeep dive....

#investing #christianinvesting #biblicalfinance #personalfinance #stockmarket #shares #realestate #The5000 #money

Joshua Fong, CFA

Article by Joshua Fong, CFA

Published 30 Dec 2022