We recommend that you also read this article’s sister post:”The key points of Andy Lin investment style“
Rarely trade
From my long-term investment experience, I have made statistics myself. Judging from the transaction amount as a percentage of the total amount of my investment portfolio, looking back on the past nearly thirty years of investment career, the average annual turnover rate is below single-digit percentages.
The number of stocks I have bought, in terms of the number of stocks I have bought, in my nearly thirty years of investing career, is honestly very small.
Annualized rate of return (IRR) is everything
I have published in my two books “The Rules of Super Growth Stocks Investing” and “The Rules of 10 Baggers” and my blog have repeatedly emphasized the importance of annualized return: (“Investors should care annualized rate of return (IRR), How to calculate?“)
In a nutshell, I only care about my long-term annualized return, because for long-term investors, it represents long-term compound interest.
Concentrated investment
In my nearly thirty-year career, these top positions have always accounted for more than three-quarters of my investment portfolio.
Investor rewards
When I first bought the stocks in my portfolio, none of them had ever carried out share repurchases or distributed dividends, two of the ways listed companies give back to investors.
After long-term investment, more than half of the holdings in my investment portfolio now pay dividends. Only one stock has not undergone share buybacks so far.
In my nearly thirty years of investing, I have experienced many stock splits.
I have mentioned in my books and blog articles: For all excellent and rare listed companies that are worth holding for a long time, it is inevitable that the company will give back to investors.
Great companies are rare
In addition to what I have repeatedly emphasized in my two books “The Rules of Super Growth Stocks Investing” and “The Rules of 10 Baggers“, readers can click on my two previous posts: “”Great companies are rare, two or three will make you very rich and “”Two or three stocks in your life can make you very rich“.
“Do it right a few times in your lifetime is enough” Yes, I am a witness. My portfolio reflects what I said in these two previous posts.
The power of compound interest
The final result that can be seen in long-term investment is “The Compound Effect“, but the biggest contributor to compound interest is “Exponential growth can produce excess returns“. This is what we said “The power of compound interest“.
Simple is truth
Simple and clear truth is the truth, “The simpler the investment, the better“. As I quoted in the preface to my book “The Rules of Super Growth Stocks Investing“, Buffett told Bezos, “Because no one wants to get rich slowly.”
Patience payoffed
Buffett: “Successful investing requires time, discipline and patience.” “No matter how talented you are or how hard you work, some things just take time, just like giving birth to a baby takes 9 months no matter what.”
Conclusion
All of the above are based on long-term investment. Without long-term investment, none of this would be possible.
There are no shortcuts on stock investment. I spend most of my time on reading, including annual reports of listed companies, financail news from trusted prividers, classic investment books, business books, biographies of several investment masters, write regular columns for magazine and my blog posts. Among them, the one that takes me the most time in a day is the financial reports of listed companies.
Relative articles
- “The key points of Andy Lin investment style“
- “Andy Lin’s long-term investment experience sharing“
- “Andy Indices will be daily updated on the homepage“
- “Blog supports Simplified Chinese auto display“
- “English version of the website and blog are online“
- “The First Anniversary Review: Top 10 read articles in Andy Lin’s blog“
- “The Second Anniversary Review: Top 10 read articles in Andy Lin’s blog“
- “The Third Anniversary Review: Top 20 read articles in Andy Lin’s blog“
- “The Rules of 10 Baggers book release event and speech, Taipei (1:00~2:00 pm, 10/16/2022)“
- “New book Release event and speech Tainan for The Rules of 10 Baggers (2:00~3:00 pm, 11/26/2022(Sat))“
- “People who are good at deferred gratification is more likely to succeed“
- “The Compound Effect“
- “Exponential growth can produce excess returns“
- “The power of compound interest“
- “Why concentrated Investment?“
- “Why long-term investment is better?“
- “Investors should care annualized rate of return (IRR), How to calculate?“
- “Patience, an indispensable element of investment success“
- “Stocks are the best bet for long-term investors“
- “Great companies are rare, two or three will make you very rich“
- “Do it right a few times in your lifetime is enough“
- “Two or three stocks in your life can make you very rich“
- “The simpler the investment, the better“
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