"If you can keep your head when all about you are losing theirs ...
If you can wait and not be tired by waiting ...
If you can think – and not make thoughts your aim ...
If you can trust yourself when all men doubt you ...
Yours is the Earth and everything that’s in it."
My investment strategy is simple. I keep track of a list of high growth companies in Google spreadsheet. When I decide to invest in a company because it is valued appropriately and has great management, I buy and hold for a very long time (minimum 3 years). I avoid day trading and panic buying/selling. I also avoid businesses that I don't fully understand.
I read these books before I got started with investing (no prior knowledge). The first one is a must-read.
- The Intelligent Investor by Benjamin Graham
- Common Stocks and Uncommon Profits by Philip A. Fisher
- One Up On Wall Street by Peter Lynch
I don't usually keep more than 7-12 stocks in my portfolio. Diversity for the sake of diversity yields mediocre return. Since I only invest for the long-term, I usually don't pay attention to stock prices, charts, news, etc. I get updates by reading quarterly earning results from the companies that I'm holding. I also keep some cash around that sits idly for the sole purpose of buying during a market crash.