Jeremy Grantham’s GMO is out with their latest newsletter. Its always a good read.
This time I noticed he started a new series. It taps into his 47 years of investing experience to bring some learning points to amateur investors like myself.
It can be quite outcome bias but there are much to learn as well.
We always thought when we knew a friend working in a company we invest in, or we have talked to the CEO or COO, and have sound out our doubts, we know better than the average investor what the company is about, what kind of competitive advantage they have.
We have a leg up on others. And most of all, when there is shit, we are likely to know first hand.
Well this is a good example of how this could blow up in our face.
It is also a lesson that if your entire wealth building for financial independence is build upon your company share scheme, it make sense to diversify away the risk of it imploding in your face.
- New 6-Month Singapore T-Bill Yield in Early-December 2023 Should be Slightly Higher at 3.85% (for the Singaporean Savers) - November 30, 2023
- Have the World or Emerging Market Healthcare Stocks Outperform the World and EM Index? - November 26, 2023
- Retirement Spending Can Vary from 25% to 100%. Not your usual 2% to 3% a Year. - November 23, 2023