I believe the behaviour of a successful value investor is reflected by the humble thumbtack.
The broad head of the thumbtack represents the bulk of the activity of the successful investor: the gathering of information and a thorough, logical analysis of this information.
When the opportunity arises, the investor acts swiftly and with conviction, unswayed by what may be a different popular opinion, and this is represented by the sharp pin of the thumbtack. All these are underpinned by 2 rare and valuable attributes: Independent thinking and Patience.
My portfolio is usually concentrated, with minimal activity. I hope that this focus allows me to have a more in-depth analysis and knowledge of the companies I own, compared to the typical investor.
I do utilise leverage at certain times, although I am currently rethinking that. Leverage is a potent drug that makes you feel good when times are good. When times are bad, the withdrawal symptoms exacerbates everything.
I also invest across asset classes, although at any point in time, it is likely that the bulk of my portfolio is in equities. I am also likely to utilise options in certain equities, mainly US traded ones.
Although the main methodology is based on finding deep value, I do utilise some Technical Analysis. Nothing fancy though. Simple stuff like looking at the 50 day and 150 day moving averages, and trying to buy only after a bottom has formed etc.
As my focus will be on deep value and contrarian opportunities, I’d expect to have huge volatility. I’m mentally prepared for some investments to show severe losses before, hopefully, they gain very meaningfully.
SG ThumbTack investor 