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You are here: Home / Investing / Can You Sum Up Your Investing Philosophy in 10 Words?

Can You Sum Up Your Investing Philosophy in 10 Words?

Life is short, and thus brevity is beautiful.

Allen Saunders understood this when he defined life in just about than ten words – “Life is what happens to us while we are making other plans.”

When Mahatma Gandhi was asked how an individual can change the world, he said in ten words – “Be the change you wish to see in the world.”

Our own Benjamin Graham distilled the secret of sound investment into just three words – “Margin of safety.”

I remembered these quotes from Saunders, Gandhi, and Graham when my daughter challenged me to summarize “truth” in no more than 10 words.

I replied, “Be exactly who you say you are.”

Anyways, this gave me an idea for this post. This is also what led me to this post from Jason Zweig where he asked his readers to sum up their investing philosophies in less than 10 words.

50% of the "early bird seats" for my Kolkata Value #Investing Workshop are gone! Register now if you wish to attend – https://t.co/dVRV8D4bmd

— Vishal Khandelwal (@safalniveshak) August 1, 2014


So, today, I put forth this challenge to you – Sum up your investing philosophy in 10 words or less, and share in the Comments section of this post.

Simply put, your investing philosophy is the overall set of principles or strategies that guide you as an investor.

Write down the same in 10 words or less in the Comments section below.

Please do not use quotes from leading investors to frame your philosophy. It should be your “personal” investing philosophy – what you follow in your own investment life. So please be original, and honest. 🙂

I took up my own challenge and framed my personal 10-word investing philosophy, which reads – “Do the best. Expect the worst. Keep learning. Keep going.”

This is the concise version of the five most important things I practice in my investing life –

  1. Hard work;
  2. Margin of safety;
  3. Read, read read;
  4. Learn from my own and others’ mistakes; and
  5. Patience and perseverance.

Anyways, I also asked this question to Prof. Sanjay Bakshi, and he spelled his investing philosophy in just three words – “Own undervalued Moats.”

And here is the investing philosophy of Rohit Chauhan – “Buy undervalued companies with a catalyst.”

Now, it’s your turn.

Sum up your investing philosophy in 10 words or less and share in the Comments section below.

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Reader Interactions

Comments

  1. Gaurav Akash says

    August 3, 2014 at 7:50 pm

    I am not an investor ….well not yet. Naturally I can’t come up with something worth mentioning within 10 words. But I feel in the quote “Do the best. Expect the worst. Keep learning. Keep going.” expect the worst has a negative connotation…can we replace “expect” with “prepared for” in that quotation…just a thought 🙂

    Regards
    Gaurav Akash

    Reply
    • Vishal Khandelwal says

      August 3, 2014 at 8:38 pm

      Thanks Gaurav! Because I expect the worst, I keep a margin of safety, which I have mentioned in the post. 🙂

      Reply
    • P.sen says

      August 30, 2014 at 9:09 pm

      “Stick to the basics” is my investment philosophy. It is less than 10 words!

      Reply
  2. Vaibhav Chugh says

    August 3, 2014 at 8:04 pm

    Set goal, invest and then expect need not greed

    Reply
  3. Dev says

    August 3, 2014 at 9:20 pm

    Not an original one…but couldn’t resist sharing it 🙂

    Remember God in Good Times & Equities in Bad Times.

    Reply
    • Vishal Khandelwal says

      August 3, 2014 at 10:45 pm

      Thanks Dev…but something original will be great 🙂

      Think…think 🙂

      Reply
    • peeyush garg says

      August 9, 2014 at 1:36 pm

      beautiful thought :D.. and actually opposite happens..

      Reply
  4. Ramnath says

    August 4, 2014 at 12:43 am

    I think i read this one in your blog Vishal. I keep reminding myself this one.

    Capital protection is more important than capital appreciation.

    Reply
    • bharat shah says

      August 4, 2014 at 10:16 am

      then better one be in debt instruments!

      Reply
  5. Ankit says

    August 4, 2014 at 6:43 am

    Buy scalable moats at attractive prices and sit on it.

    Reply
    • Barath says

      August 4, 2014 at 7:54 am

      Looks like you sold an undervalued moat early? Just like I did!!

      Reply
    • AMN says

      August 4, 2014 at 8:15 am

      Buy High ROCE, Positive Cash Flow, Growth Prospects. Wait patiently.

      Reply
  6. Manoj Dureja says

    August 4, 2014 at 7:37 am

    Prepare hard, act, learn, improvise and never give up.

    Reply
  7. Barath says

    August 4, 2014 at 7:52 am

    Own undervalued moats and practice “Sit on your ass” investing. =D

    Reply
  8. Akhilesh Pathak says

    August 4, 2014 at 8:31 am

    Dear Vishal and Tribesmen,

    My philosophy in Life and Investing are same….All Investing is Intelligent if its more like Life- It Evolves !!

    “Read, Asses intelligently, Learn, Apply, Have Patience, Share, Live Happily.”

    Read books/articles/annual reports, Assess the business, value, management, scalability, growth, pros and cons, past, present and future, evaluate intelligently, Learn form masters, Behavioral biases your own mistakes, apply those principles in your investments, understand the role of action and inaction in the investing at appropriate times, Wait for right moments, right opportunities and right returns..Share the joy/reward/returns with family, friends and whosoever you can help in need ( return on this investing activity is far far greater than any of the other processes)…and Live Life happily, making others happy in the process 🙂

    Warm regards

    Akhilesh

    Reply
  9. anup says

    August 4, 2014 at 8:44 am

    identify stks. buy on dips,10 % rise, sell.may keep some.

    Reply
  10. Santosh Salunkhe says

    August 4, 2014 at 9:03 am

    Hi Vishal,

    “Being financially free”

    Reply
  11. Nagendra says

    August 4, 2014 at 9:13 am

    Buy simple,understandable,good managed businesses and sit tight

    Reply
  12. Umang Joshi says

    August 4, 2014 at 9:14 am

    “I think returns are directly proportional to increasing waistline and decreasing hairline… Buy and get old”

    Reply
  13. David says

    August 4, 2014 at 9:17 am

    Follow simple/sensible rules and stick with them(discipline)

    Reply
  14. Krish says

    August 4, 2014 at 9:34 am

    Just want slightly more than the debt returns.

    Reply
  15. Kohinoor Roy says

    August 4, 2014 at 10:00 am

    Its obvious……. pay lesser [ not less ], receive more.

    Reply
  16. Akbar says

    August 4, 2014 at 10:05 am

    Start with low exposure, add to winners, sell losers.

    We come accross different ideas, after evaluating if I like an idea I invest in it with lower weightage. Over time if the performance is good weightage is increased and bad performers are culled out. Has worked for me.

    Reply
  17. Premal Sanghavi says

    August 4, 2014 at 10:08 am

    Make Risk Managment your second wife

    Reply
  18. bharat shah says

    August 4, 2014 at 10:21 am

    perhaps someone suggested;

    keep it simple stupid!

    Reply
  19. anand says

    August 4, 2014 at 10:22 am

    Quality Quality Quality @ Reasonable Price.

    Reply
  20. Rahul Chauhan says

    August 4, 2014 at 10:32 am

    Create an Investing Style (Process), follow it, modify it (if required) & sit tight.

    Reply
  21. Anand says

    August 4, 2014 at 10:38 am

    Think and value the stock like a owner,buy at fair price and enjoy the wealth.

    Reply
  22. Karthikraja says

    August 4, 2014 at 11:01 am

    Own Quality Stocks / Index with Big Patience; it Pays.

    Reply
  23. ashish says

    August 4, 2014 at 11:12 am

    Learn from your mistakes

    Reply
  24. Swaminathan Kumaran says

    August 4, 2014 at 11:35 am

    Keep it simple, own quality and have patience – no greed.

    Reply
  25. volca says

    August 4, 2014 at 12:20 pm

    Can buy @ my price with MOS, in 15 months

    Reply
  26. Pramod Dwivedi says

    August 4, 2014 at 12:37 pm

    Buying at what its worth at not what it will be!!

    But I also would like to share a borrowed one which has moved me and changed me by Peter F. Drucker

    ” We don’t know what we don’t know and worst we don’t know that we don’t know”

    Reply
  27. Reni George says

    August 4, 2014 at 12:56 pm

    Live life and Invest the way you want to…..

    Reply
  28. Akshay Jain says

    August 4, 2014 at 1:36 pm

    Look for gold in the dustbin

    Reply
  29. Arun Prakash Singh says

    August 4, 2014 at 2:10 pm

    Read, develop insight. Pick your spots. Avoid noise and hyperactivity.

    Reply
  30. Ginto says

    August 4, 2014 at 2:20 pm

    Let brain do the screening, and heart do the selecting.

    Reply
  31. R K Chandrashekar says

    August 4, 2014 at 3:15 pm

    Power of compounding on businesses with 3 M’s- Moat, Market Leadership and Management .
    On the Financial metrics- ROE, Cash on balance sheet and Dividend payout.
    Compounding and Dividends are a winning formula:
    Compounding means- Long term Capital Gains- No Tax
    Dividends——Tax Free
    Simplify your life and live peacefully
    Remember and help the have not’s as the saying goes” I cried as i did not have shoes, till i found a man without feet”

    Reply
  32. Vasim says

    August 4, 2014 at 3:16 pm

    Proper Allocation, Buy near Low, Understandable business, Clone….

    Reply
  33. Abhijit says

    August 4, 2014 at 3:19 pm

    Think like pessimist, hope like optimist & act real.

    Reply
  34. Vikas says

    August 4, 2014 at 4:04 pm

    “Always Buy Rupee with 50% paise”

    Reply
  35. rks says

    August 4, 2014 at 4:49 pm

    Buy value, sell euphoria.

    Reply
  36. Hemang Shah says

    August 4, 2014 at 5:13 pm

    Keep it Simple; Keep it Concentrated; Prepare to get LUCKY:-)

    Reply
  37. Samip says

    August 4, 2014 at 5:19 pm

    Buy great businesses within [Circle of Competence], < intrinsic worth & let it compound.

    Reply
  38. Bhupesh Das says

    August 4, 2014 at 5:51 pm

    Don’t be emotional buy rational

    Reply
  39. Rohan Advant says

    August 4, 2014 at 5:53 pm

    “Buy when sustainable cash cow businesses are facing solvable problems”

    Reply
  40. SP says

    August 4, 2014 at 6:13 pm

    Investing = Knowledge + patience + acceptance + boond-boond

    – Knowledge: about the company, business and sector
    – Patience: to wait (and wait) till the opportunity is right
    – Acceptance: that I can do a mistake and that I did it
    – Boond-Boond: Invest in stocks in parts-and-pieces, one piece a month – every month (equivalent of SIP/MIP)

    Note: Do NOT misunderstand my reference of Knowledge with education, analysis (fundamental /

    Reply
  41. Venkat says

    August 4, 2014 at 7:11 pm

    Truly imitate Buffett and Munger (when it comes to investing)!

    Reply
  42. Nishanth says

    August 4, 2014 at 7:20 pm

    Patience,Courage,Cash.

    Reply
  43. Vikas Dhanuka says

    August 4, 2014 at 7:44 pm

    Scalable Moat Business having Reasonable Price & Great ROE

    Reply
  44. Sanjay Srivastava says

    August 4, 2014 at 8:56 pm

    Start immediately. Study. Pay for knowledge. Build portfolio. Invest actively.

    Reply
  45. Kishore Mulay says

    August 4, 2014 at 9:18 pm

    Invest only when you understand the best.

    Reply
  46. K.Navin kumar says

    August 4, 2014 at 10:02 pm

    Read a lot, analyze the interesting, invest in the best

    Reply
  47. satheesh says

    August 5, 2014 at 4:55 am

    “do what your mind says than others”

    Reply
  48. RS says

    August 5, 2014 at 1:53 pm

    Approximately valuing a simple business and buying with adequate margin of safety.

    Reply
  49. Jagbir says

    August 5, 2014 at 3:49 pm

    “Quality and frugality of my life should reflect in stocks.”

    Reply
  50. Harsh Thaker says

    August 5, 2014 at 4:05 pm

    The goal of investing is to compound money

    Reply
  51. jigar shah says

    August 5, 2014 at 7:06 pm

    “Moat with Growth at Reasonable Price”

    Reply
  52. Rahul Kashyap says

    August 5, 2014 at 7:17 pm

    Get rich, quickly.

    Reply
  53. Kiran Kumar says

    August 5, 2014 at 8:07 pm

    Investing is like betting in a derby, though there are occasional losses the best horse always comes out as the winner when averaged over a long period of time. So identify good companies, invest regularly and wait patiently.

    Reply
  54. Rakesh says

    August 5, 2014 at 9:29 pm

    Think long term, setup goals, simplify and enjoy.

    Reply
  55. Saurabh says

    August 6, 2014 at 3:03 am

    Don’t loose money

    Reply
  56. Saimanohar says

    August 6, 2014 at 6:57 am

    Study to identify growth stories. Do not get exulted if it goes up. Do not get depressed if the stock goes down. Have a boring Betty attitude in long termers.Subside your emotions as much as you can.

    Reply
  57. चंद्रसिंग says

    August 7, 2014 at 6:22 pm

    “Invest for long terms, enjoy good dividends when you retire!”

    Reply
  58. peeyush garg says

    August 9, 2014 at 1:31 pm

    Hi ,
    Thanks for focing me to think about my own philosophy. Here it is.
    1. Spiritually keep an eye on Previous Growth , Cash flows ,Growth prospects(moats),valuations,quality of brand,quality of management of ur stocks. Give them strong weightage in portfolio.
    2. U are alone and only responsible for ur decisions.
    3. Never compromise ur own principle.respect/follow ur principle in bad times/good times. (Its very difficult)
    4. Buy stocks as u buy Groceries and not as you buy cent.
    5. Create ur investment principles with Secondary brain (and not from primary (temptative) brain.
    6. Have patience for right time (as per your principles)
    7. Believe that life and stock market is like OSCILATOR. Hence good time and bad time are like day and night.
    8. Always be prepared for worst, and be prepared with fall back plan (if market is going to crash 60% in next 1 Year).
    9. Be lazy.. Just keep ur stocks in observation. Dont be biased for ur stocks.If u study too much ur own stocks , u become biased for them.
    10. Most important: have humility. be ready to accept ur mistakes. Be humble.

    Reply
  59. Subhodeep Mukhopadhyay says

    August 9, 2014 at 9:32 pm

    Make money. Don’t lose money.

    Reply
  60. Karthik says

    September 8, 2014 at 11:42 pm

    my philosophy of investing is:
    PRICE to VALUE
    (originally from Buffett)

    Reply
  61. Hemanth says

    September 26, 2014 at 10:57 am

    Identify which sector has BAD NEWS, then research & invest in a company which has the potential to withstand the crisis for 2 or 3 years.

    Reply
  62. ajay says

    November 4, 2014 at 12:26 am

    Earn, Have Financial Goal and Financial Plan, Save, Invest Systematically, Stick to Asset Allocation, Book Profits at times of euphoria and Re-invest at times of fear!

    Ajay

    Reply
    • bharat shah says

      November 4, 2014 at 10:30 am

      @ajay
      will please elaborate term ‘euphoria’ in some numbers related to market?

      Reply
  63. achal says

    December 15, 2014 at 6:16 am

    Start Early. Die Late. Keep Reading.

    Reply
  64. Jon Boorman says

    January 3, 2015 at 9:33 pm

    ‘I buy stocks in uptrends and manage risk.’

    Reply
  65. Hemant Kumar Saxena says

    November 23, 2022 at 4:58 pm

    Protect your downside, Upside will take care on its own.

    Reply
  66. Hemant Kumar Saxena says

    November 23, 2022 at 4:59 pm

    Protect your downside ,Upside will be take care on its own

    Reply

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