- 𝙃𝙤𝙪𝙨𝙚 𝙊𝙬𝙣𝙚𝙧𝙨𝙝𝙞𝙥 𝘾𝙤𝙨𝙩𝙨: Inherited and bought a house, but unexpected renovation and furnishing costs taught me the importance of being financially prepared for large expenses. A reminder to keep an emergency fund or stay liquid for unforeseen costs.
- 𝙊𝙥𝙩𝙞𝙤𝙣𝙨 𝙏𝙧𝙖𝙙𝙞𝙣𝙜 𝙋𝙞𝙩𝙛𝙖𝙡𝙡𝙨: Experimented with long-term options but faced significant losses. This experience reinforced that while options can be powerful, they're complex and risky, and not necessary for successful investing.
- 𝙏𝙝𝙚 𝙃𝙞𝙜𝙝 𝘾𝙤𝙨𝙩 𝙤𝙛 𝙃𝙤𝙡𝙙𝙞𝙣𝙜 𝘾𝙖𝙨𝙝: Keeping a large portion of my portfolio in cash diluted my returns in a rising market. It's a stark lesson in the opportunity cost of not staying fully invested and the importance of timely market participation.
- 𝙊𝙫𝙚𝙧𝙫𝙖𝙡𝙪𝙚𝙙 𝙎𝙩𝙤𝙘𝙠𝙨 & 𝘿𝙞𝙫𝙞𝙙𝙚𝙣𝙙 𝙏𝙧𝙖𝙥𝙨: My investment in Icahn Enterprises $IEP , lured by high dividends, turned sour as it was overvalued with no margin of safety. A crucial lesson in not compromising on fundamental value for attractive dividends.
- 𝙐𝙉𝙁𝙄'𝙨 𝘿𝙤𝙬𝙣𝙛𝙖𝙡𝙡 & 𝙩𝙝𝙚 𝙄𝙢𝙥𝙤𝙧𝙩𝙖𝙣𝙘𝙚 𝙤𝙛 𝘾𝙚𝙧𝙩𝙖𝙞𝙣𝙩𝙮: UNFI $UNFI was a significant loss due to its vulnerability to macroeconomic changes and low margins. It highlighted the need for certainty in a company's future cash flows and the risks of investing in companies with thin margins.
𝗞𝗲𝘆 𝗧𝗮𝗸𝗲𝗮𝘄𝗮𝘆𝘀::
- 𝙀𝙢𝙚𝙧𝙜𝙚𝙣𝙘𝙮 𝙋𝙧𝙚𝙥𝙖𝙧𝙚𝙙𝙣𝙚𝙨𝙨: Always have a plan for unexpected expenses, especially when making large investments like property.
- 𝙐𝙣𝙙𝙚𝙧𝙨𝙩𝙖𝙣𝙙𝙞𝙣𝙜 𝙄𝙣𝙨𝙩𝙧𝙪𝙢𝙚𝙣𝙩𝙨: Deeply understand any investment instrument, like options, before diving in. They're not essential for everyone.
- 𝙎𝙩𝙖𝙮 𝙄𝙣𝙫𝙚𝙨𝙩𝙚𝙙 𝙒𝙞𝙨𝙚𝙡𝙮: Time in the market is often more beneficial than timing the market. Don't let cash drag down your potential returns.
- 𝙑𝙖𝙡𝙪𝙚 & 𝙎𝙖𝙛𝙚𝙩𝙮 𝙁𝙞𝙧𝙨𝙩: Always prioritize fundamental value and a margin of safety in investments, especially when tempted by high dividends.
- 𝘾𝙚𝙧𝙩𝙖𝙞𝙣𝙩𝙮 & 𝙍𝙚𝙨𝙚𝙖𝙧𝙘𝙝: Ensure you have a high degree of certainty about a company's future prospects and understand how external factors might impact its performance