Timmy Treadwell wrote:
The Timmy Treadwell method of investing is to only buy stocks in things you use that you like and use. This has been a very successful thing for me. For example, I was in on Amazon at $12 per share. I was also a very early investor in Netflix. Both are services I used and liked, and I assumed others would come to like them as well.
Never invest in stuff you hate, like cable tv companies or something.
My problem is that I often identify winners, but I sell way too early. If I can double or triple my money, I usually sell out. I never hold long term, and I have lost hundreds of thousands (or even millions) of dollars in potential returns by getting out too early.
common issue there about selling too early. Most of my investment principles boil down to little one sentence truisms, and a couple come to mind.
"Let your winners ride" and i am not sure who said it but it stuck with me and i live by it. But it is countered, as most will be, by the truism "Don't fall in love with a stock". So, there's that. LOL.
Also, one of the biggest impressions for me when i moved here to the PNW and started investing years ago was the stories about the lucky bast@rds who got in on the ground floor of Microsoft stock or similar tech rocket. The papers were full of stories like 'if you had bought $10K of microft in 1992, you would have $1.1 million today. But in reality, a friend who worked there in about the early 2000 's told me of a common anecdote around there was a reference to $10,000 snowmobiles as eluding to how a bunch of employees cashed out their stock option too early to buy something, and if they hadn't, it would be worth 20 times as much today. Point being, they sold too early.
Just more things to consider, but who's to say?