Lessons

Today's lesson is one that burns. I am very fortunate (whether by skill, or perhaps and I readily admit, a few healthy doses of good luck) that in a terrible environment for investment markets I have managed to grind out positive returns in the last twelve months. I may regret saying that in the near future, as I take a firmly glass half full view on all things Eurozone and over leveraged Western consumers. I could very easily lose a lot of money - and quickly. 

Nonetheless I am pleased with how I have fared. And yet, I should have fared 2% better. I bit the bullet and sold out of RCU today at a substantial loss. RCU is the one stock in my portfolio where I deviated from the principles that govern every other position, and it has cost me badly. This reinforces exactly how important discipline is to the investment process. 

So, what can I take away from this to ensure I improve as an investor ?

No matter how cheap it looks  - even if it is 0.3x book....

1) Stick to higher quality businesses. It works!

2) Stay the hell away from highly leveraged balance sheets. Especially when depending on who you listen to, the global banking system is royally f*.....

Disappointing stuff, but a lesson learned. Onwards and upwards!