The key points of Andy Lin investment style

We recommend that you also read this article’s sister post: “Andy Lin’s long-term investment experience sharing“

Table of Contents

Andy Lin investment style

Readers who have read my two books and my blog should be familiar with the five most critical investment styles among the following Andy Lin investment styles that I have repeatedly advocated:

US stocks only
Long-term investment
Growth stocks preferred
Concentrated investment
Invest within my circle of competence

US stocks only

Why do I only have US stocks in my portfolio? Because only U.S. stocks have the most value for long-term investment (please click on my previous post: “Why are only US stocks the most valuable for long-term investment?“).

Most people always have thousands of reasons to refute “only U.S. stocks have long-term investment value.” The argument is nothing more than:

There is no limit on the rise or fall of U.S. stocks, which is too dangerous: we only think about falling, how come we don’t think about rising?
There are handling fees and exchange rate risks when converting money into U.S. dollars: The U.S. dollar is already the safest currency on the planet and has proven to have the most stable exchange rate throughout the century. This should remain the case in your lifetime and mine. Have you ever heard of “unfounded worries”?
There is a time difference between US stocks and Taiwan, and the trading rules are different: for long-term investors, these two are not reasons at all. There are no trading rules in that stock market, and I have always been opposed to short-term trading such as hedging and swing operations.

In short, “If you don’t want to let go of your children, you won’t be able to trap the wolf.” There is no 100% safe transaction in this world, and stock market investment is no exception. Hide money under your bed at home and the banknotes may become rotten over time. If you deposit it in a bank, there is a risk of being misappropriated. These two seem safe, but after a few decades, how much of the original purchasing power of cash will be left after inflation?

Long-term investment

Because of this, I have already explained it in detail in another post of “Andy Lin’s long-term investment experience sharing“, and I will not repeat the content here.

Interested readers can also click on my other post to learn about my in-depth views on long-term investment: “Why long-term investment is better?“, or refer to my extensive content on long-term investment in my two books, “The Rules of Super Growth Stocks Investing” and “The Rules of 10 Baggers“.

Concentrated investment

I personally believe that “Diversification investment is deadly to portfolios“! I know the knee-jerk reaction of most people is that concentrated investing is too risky, but there is a premise for this majority view. This statement only holds true if you don’t know enough about the business you are investing in. If you carefully spend a lot of time researching the fundamentals of the company, there is no so-called risk──This passage is exactly Buffett’s view on concentrated investment and risk.

“Great companies are rare, two or three will make you very rich“, “Do it right a few times in your lifetime is enough” and “Two or three stocks in your life can make you very rich“. In this case, why do you know that there are rare stocks of a few companies that can make people gradually rich after long-term investment? With limited funds, there is really no reason to invest in the stocks of other companies whose long-term performance is uncertain.

In short, knowing that there are very few rare enterprises that can make you rich, concentrating funds for investment is actually an opportunity, and there is no such thing as risk.

Growth stocks preferred

I detailed my preference for investing in growth stocks in a previous post. Interested readers can click on my post: “Why I prefer growth stocks instead of value stocks?“

To be honest, growth stocks are the most difficult of the bunch. Because it requires a lot of data research, financial reports, tracking possible companies, comparing historical data, market research and competitive reports; and the probability of failure is very high.

However, it is an indisputable fact that growth stocks are prone to skyrocketing prices because they have not experienced long-term market verification.

Why invest in growth stocks? Because only growth stocks have a greater chance of achieving exponential growth, and “Exponential growth can produce excess returns“.

Invest within my circle of competence

My main investment area is technology stocks, but I am not limited to technology stocks. I have already discussed the reasons at great length in my two books “The Rules of Super Growth Stocks Investing” and “The Rules of 10 Baggers“, so I don’t want to repeat the contents of my book one here.

But the circle of competence is one of my main considerations, and rightly so. Another reason is that over the past half century or so, the major stocks that have driven the rise of U.S. stocks have all been technology stocks. Please note: Due to the advancement of the times and technology, the definition of the technology stock group in each era has changed. different.

Peter Lynch said in his book “One Up on Wall Street”, Peter Lynch’s great book for investing newbie“: Although he clearly has investment advantages in the medical industry that others are difficult to possess, he has often see that many doctors do not invest in companies in the medical industry, but instead invest in oil exploration companies that they are not good at at all. He dreams of getting rich overnight and prays that the oil company he invests in will one day dig up oil, causing the stock price to skyrocket several times in a day.

Andy Lin investment style — credit: Ideogram

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