**Rules, Checklist & investment philosophy:**
* I will read this list completely before buying or selling
* 90% of my portfolio will be ETFs that I will invest and forget
* I will buy only when an opportunity presents itself
* Not because I want to participate in the market
* Not because of FOMO
* Two valid long-term buys exist -
1. Quality at a fair price → steady compounding, low drama
1. The business is excellent
2. The competitive position is understood
3. The risks are visible and mostly priced
4. The valuation assumes “things mostly go right”
5. You don’t need to be early — you need to be *not wrong*
6. If the market is mostly right, but the business is excellent, let time do the work
2. Quality temporarily mispriced → higher upside, higher emotional cost
1. The business quality is intact
2. But the story is broken
3. Or the future is misunderstood
4. Or the time horizon is mismatched
5. If you can’t describe *why* the market is wrong, you’re not contrarian — you’re just optimistic
* I should be able to tell how the company makes money and what catalysts are possible
* My thesis should be clear - *An opportunity requires a written thesis that explains: why the market is mispricing this business today, what changes my mind, and what must go right for the return to occur.*
* I will understand the industry dynamics and learn more about the industry
* I will read the earnings report / attend the earnings calls
* If I dont have time to go over earnings calls, I am diversified into too many companies. At any time, I will make sure I am not invested in more than 10 companies
* I will look at the balance sheet and other fundamentals
* I will also look at the technical charts
* I will buy with a 20 year outlook but will sell if trim or sell criterias are met
* I will not invest more than 10K in a single stock/company
* I will not invest more than 500 in a microcap
* I will not pay an unfair price for a good company even if its interesting
* I will sell if
* If the thesis has changed and fundamentals deteriorate
* If my thesis is complete
* I will trim the position if the position becomes more than 10% of my overall portfolio
* I will avoid the urge to overtrade
* Currently my focus is on concentration vs diversification which means I need higher conviction plays vs diversification for the sake of diversification; Long term, I will have diversified into 10 stocks with concentrated amounts
* *I accept that concentrated positions will feel uncomfortable. Discomfort alone is not a sell signal.*
* I will keep cash on the side for when opportunities arise. I will keep atleast 10K as minimum
* I will not touch my investment unless I need to trim or sell criteria are met