|  Richard Koch was a consultant with the Boston Consulting Group, a partner with Bain & Co, and a co-founder of LEK Consulting before becoming a private equity investor on his own account. He was behind the rescue of Filofax in 1990, was the original backer of the Belgo restaurant chain before it went public, and has had major investment successes with Plymouth Gin and Capstone Publishing. Books The FT Guide to Selecting Shares that Perform , FT Prentice Hall, 2000 The Third Revolution , Capstone, 1998 The 80/20 Principle , Nicholas Brealey, 1997 Finding your own approach to stockpicking -
Do it your way. Follow an investment approach that matches your personality and psyche. -
If you don't succeed, give up. Keep an accurate record of your investments, and if you don't beat the index, give up and buy a tracker fund. -
Don't copy Noah. Don't end up with a zoo of stocks. Have a small portfolio where each investment is a significant position for you. -
Stick to one investment approach. This must be your own philosophy, reflecting your skills and personality. Differentiate your approach from everyone else's. Unless it is unique, you won't out-perform. -
Know yourself. Don't try to be something you aren't. Evolve your own investment niche. -
Go for the breeders. Only buy stocks if there is potential to multiply its value. If the prospective gain is less than 100% over 2-5 years , pass. -
Stop losses. Always sell stocks that decline by 15%. -
Gear up gains. Buy more of stocks that beat the index by more than 50% in any year. -
Gather outsider information. Get price sensitive information on your investee or potential investee companies - by doing your own independent outside research. -
Follow the Pleasure Principle. If it's not fun, stop doing it. If it is fun, do more of it. And if it is fun, make up your own rules.  |
