[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  Dimitry Nakhla | Babylon Capital® [@DimitryNakhla](/creator/twitter/DimitryNakhla) on x 14.5K followers Created: 2024-03-07 15:06:25 UTC Looking back at some of your best investment decisions & your worst investment mistakes can help you become a better investor 💸 Mistake # X & Best # X are my favorites ‼️ You will benefit from reading this, these are things I wish I knew early on 💯 Here are X of my biggest MISTAKES 👎🏽: 1️⃣ I waited too long to buy high-quality businesses — I was mentored in 2016 & my mentor was a VALUE first investor (rather than QUALITY first) & was heavily influenced by Benjamin Graham’s ideologies as it related to low multiples, tangible assets, etc. Higher multiples scared him off and as a result, scared me off as well I did not understand why some companies deserved to trade at a premium & would continue to demand a premium The opportunity cost here included owning companies like $V $MA $COST $GOOG $SHW all the way back in 2016 — companies I was interested in buying & owning but ended up never buying due to their multiples 2️⃣ Selling $ABBV after a XXX% gain When the Brexit crisis happened in June 2016 I accumulated shares of $ABBV near $XX. When $ABBV acquired Allergan for a P/B <1 I accumulated even more shares near $XX I liquidated my $ABBV holding for a ~100% gain at $XXX — a big mistake, here’s why: Today, $ABBV dividend is $XXXX per share meaning that my yield on cost would have been ~10.5% 🤯 Imagine getting XXXX% of your original investment from dividends (along with future dividend growth) While biotech & biopharma can be volatile, I under-appreciated $ABBV pipeline, corporate culture stemming from $ABT (a dividend aristocrat), quality & total return potential. I should have been more patient and considered it an untouchable holding unless, of course, the fundamentals began to crack 3️⃣ Early in my investing journey, I used to find comfort (a false comfort) in knowing I was invested in the same companies as some investors that I looked up to — this is a mistake because IF you don’t build your own conviction (through research & a well defined system), you will likely lack the courage to hold through bad times or to even add more during bad times _______ Here are X of my BEST decisions 👍🏽: 1️⃣ I cannot emphasize how important it is to have an insatiable curiosity as an investor … read, read, read … reading @chriswmayer XXX Baggers led me to find $CPRT & appreciate the quality (especially linearity) of the business. Just that one find made reading the book worth it 10x over Reading Nick Sleep’s investor letters led me to appreciate why Scale Economics is such an important concept to understand, $COST & $AMZN are two great examples (core holdings of the Nomad Investment Partnership) of catching quality businesses early on that benefit from Scale Economics — it’s like a snowball that continues to get bigger as it rolls down a mountain Seth Klarman’s Margin of Safety, Berkshire’s investment letters, Market Wizards, etc. Always read & learn, it will make you a better investor 2️⃣ Contrary to mistake 1, one of the best investment decisions was understanding WHY some companies maintain premium multiples & adding them at opportune times despite the fact that they may have seemed “expensive” It also helps to analyze the valuations of these businesses relative to growth (think PEG) E.g. $CPRT $ASML $V $MA $ODFL $ACN $FAST are all core holdings in my portfolio now & businesses I plan to own long-term 3️⃣ Simplifying Your Process — whether you’re an investor or trader, it really helps to simplify complex topics While some may think complexity makes them look smarter, simplification is actually more difficult because it requires you to REALLY understand what matters & if it’s simple — it’s easier to replicate, bringing more consistency in your results Think the Pareto Principle, XX% of the consequences come from XX% of causes My investment process comes down to analyzing quality (balance sheet, returns on capital, consistency in FCF & EPS growth) & then valuation relative to growth 💯 #stocks #investing XXXXXX engagements  **Related Topics** [investment](/topic/investment) [Post Link](https://x.com/DimitryNakhla/status/1765755894074118465)
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Dimitry Nakhla | Babylon Capital® @DimitryNakhla on x 14.5K followers
Created: 2024-03-07 15:06:25 UTC
Looking back at some of your best investment decisions & your worst investment mistakes can help you become a better investor 💸
Mistake # X & Best # X are my favorites ‼️
You will benefit from reading this, these are things I wish I knew early on 💯
Here are X of my biggest MISTAKES 👎🏽:
1️⃣ I waited too long to buy high-quality businesses — I was mentored in 2016 & my mentor was a VALUE first investor (rather than QUALITY first) & was heavily influenced by Benjamin Graham’s ideologies as it related to low multiples, tangible assets, etc.
Higher multiples scared him off and as a result, scared me off as well
I did not understand why some companies deserved to trade at a premium & would continue to demand a premium
The opportunity cost here included owning companies like $V $MA $COST $GOOG $SHW all the way back in 2016 — companies I was interested in buying & owning but ended up never buying due to their multiples
2️⃣ Selling $ABBV after a XXX% gain
When the Brexit crisis happened in June 2016 I accumulated shares of $ABBV near $XX. When $ABBV acquired Allergan for a P/B <1 I accumulated even more shares near $XX
I liquidated my $ABBV holding for a ~100% gain at $XXX — a big mistake, here’s why:
Today, $ABBV dividend is $XXXX per share meaning that my yield on cost would have been ~10.5% 🤯
Imagine getting XXXX% of your original investment from dividends (along with future dividend growth)
While biotech & biopharma can be volatile, I under-appreciated $ABBV pipeline, corporate culture stemming from $ABT (a dividend aristocrat), quality & total return potential. I should have been more patient and considered it an untouchable holding unless, of course, the fundamentals began to crack
3️⃣ Early in my investing journey, I used to find comfort (a false comfort) in knowing I was invested in the same companies as some investors that I looked up to — this is a mistake because IF you don’t build your own conviction (through research & a well defined system), you will likely lack the courage to hold through bad times or to even add more during bad times
Here are X of my BEST decisions 👍🏽:
1️⃣ I cannot emphasize how important it is to have an insatiable curiosity as an investor … read, read, read … reading @chriswmayer XXX Baggers led me to find $CPRT & appreciate the quality (especially linearity) of the business. Just that one find made reading the book worth it 10x over
Reading Nick Sleep’s investor letters led me to appreciate why Scale Economics is such an important concept to understand, $COST & $AMZN are two great examples (core holdings of the Nomad Investment Partnership) of catching quality businesses early on that benefit from Scale Economics — it’s like a snowball that continues to get bigger as it rolls down a mountain
Seth Klarman’s Margin of Safety, Berkshire’s investment letters, Market Wizards, etc.
Always read & learn, it will make you a better investor
2️⃣ Contrary to mistake 1, one of the best investment decisions was understanding WHY some companies maintain premium multiples & adding them at opportune times despite the fact that they may have seemed “expensive”
It also helps to analyze the valuations of these businesses relative to growth (think PEG)
E.g. $CPRT $ASML $V $MA $ODFL $ACN $FAST are all core holdings in my portfolio now & businesses I plan to own long-term
3️⃣ Simplifying Your Process — whether you’re an investor or trader, it really helps to simplify complex topics
While some may think complexity makes them look smarter, simplification is actually more difficult because it requires you to REALLY understand what matters & if it’s simple — it’s easier to replicate, bringing more consistency in your results
Think the Pareto Principle, XX% of the consequences come from XX% of causes
My investment process comes down to analyzing quality (balance sheet, returns on capital, consistency in FCF & EPS growth) & then valuation relative to growth 💯
#stocks #investing
XXXXXX engagements
Related Topics investment