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.
Kyith is the Owner and Sole Writer behind Investment Moats. Readers tune in to Investment Moats to learn and build stronger, firmer wealth foundations, how to have a Passive investment strategy, know more about investing in REITs and the nuts and bolts of Active Investing.
Readers also follow Kyith to learn how to plan well for Financial Security and Financial Independence.
Kyith worked as an IT operations engineer from 2004 to 2019. Currently, he works as a Senior Solutions Specialist in Fee-only Wealth Advisory firm Providend.
You can view Kyith's current portfolio here, which uses his Free Google Stock Portfolio Tracker.
His investment broker of choice is Interactive Brokers, which allows him to invest in securities from different exchanges all over the world, at very low commission rates, without custodian fees, near spot currency rates.
You can read more about Kyith here.