My Twelve Lessons from 2009
Lesson 1: Don't believe that 6-8% annual returns are good. Understand who are making statements like that and what they have to gain by having you believe them.
Lesson 2: If I've heard about them without digging, so has everyone else and their brother and their cab driver and their hair-dresser.
Lesson 3: Keep cash around to take advantage of opportunities.
Lesson 4: There are a whole lot of under-priced companies in the world, in any economic environment.
Lesson 5: Diversification is a worthless wealth-crippling strategy.
Lesson 6: Don't listen to people who tell you that you can't achieve your investing goals, no matter what they may be. Most of them are justifying their own meager returns.
Lesson 7: Anything worth anything requires doing your homework, and most people don't want to put in the work to be successful. If you are willing to do so, it will reap rewards, continually.
Lesson 8: There are always people who know something that you don't. Listen, watch and learn. Then apply what you've learned.
Lesson 9: Most investing tips come from people who are already invested in the stock they are telling you about, including TMF.
Lesson 10: Even good stocks give surprising entry points if you are willing to wait for them.
Lesson 11: Be prepared to act decisively when an opportunity occurs. Have your preparation done in advance so that you can act quickly and efficiently at the appointed time.
Lesson 12: Control your emotions.
Hopefully, I'll have 12 new insights at the end of 2010. Fool on!