My Investment Principles

What I learned from losing 70% of my portfolio and why that was the best thing that could have happened.

 

The Bubble That Taught Me Everything

I got lucky. Not in the sense that I made money, but in the sense that I learned life-changing lessons before the stakes were too high.

It was the late 1990s. I was in my early 20s. The dot-com bubble was roaring. I didn’t know anything about investing, but the excitement was contagious. My dad, supportive as always, helped me open my first brokerage account and put 10,000 Deutsche Marks into it.

His only rule: I had to invest it in stocks. The rest was up to me.

So I jumped in, armed with enthusiasm and zero research. I bought hyped-up companies I barely understood. The only recognisable name was Nokia back when it dominated the mobile world. My account went up quickly. Too quickly. I thought:

“This is easy. I must be good at this.”

Spoiler: I was not.

When the dot-com bubble burst in early 2000, my portfolio collapsed. I watched 70% of my account disappear. It was painful, humbling, and exactly what I needed.

That loss taught me two things very early:

1. I didn’t know what I was doing and
2. Being overconfident in markets is dangerous.

It became the starting point of everything that followed.

Why Losing Early Was a Gift

Looking back, that loss was one of the most valuable financial experiences of my life.

It forced me to confront reality:

Markets don’t reward ego. They reward discipline.

Since then, I have spent decades learning, reflecting, studying risk premia, and developing an approach built on humility rather than bravado. I am still learning. Always.

What follows is not a perfect blueprint. It’s simply a set of principles I live by. Principles that have helped me stay grounded, survive drawdowns, and grow wealth steadily and quietly over time.

My Core Investment Principles

 

1. Start Early

Compounding needs time more than anything else. The earlier you start, the more the math works in your favor, even if your contributions are small.

 

2. Stay in the Game

Investing is not a get-rich-quick strategy.

It is survival, patience, and staying invested through cycles. Wealth builds slowly, then suddenly, but only if you’re still in the game.

3. Harvest Risk Premia

Returns come from bearing risk.

Equities, credit, value, carry, trend; these risk premia reward investors who can tolerate uncertainty.

Volatility is not a bug; it’s the price of admission.

 

4. Control What You Can

You cannot control markets, headlines, or macro shocks.

But you can control:

• your savings rate
• your asset allocation
• your diversification
• your behavior
• your willingness to learn

Focus relentlessly on these.

 

5. Consistency Beats Brilliance

You don’t need to predict anything.

You don’t need special insights.

You just need to contribute consistently, rebalance regularly, and avoid blowing yourself up.

The boring path is the path that works.

 

6. Respect the Downside

Markets rise slowly and fall quickly.

Drawdowns are a feature, not a failure.

If you can stay calm when everything is red, you have an edge over most investors.

 

7. Know Yourself

Your personality shapes your investment style more than you think.

Risk-taker or cautious?

Prefer simplicity or control?

The best strategy is the one you can stick with, especially during drawdowns.

 

8. Be Humble

Markets are complex. Unpredictable. Indifferent to your plans.

Humility keeps you flexible.

Dogma blinds you.

Stay open to new evidence and willing to update your views.

 

9. Avoid the Big Mistakes

You don’t need to hit home runs, you just need to avoid striking out.

Greed, leverage, and concentration ruin more portfolios than bad markets ever will.

Diversify your risks. Protect your downside.

 

10. Diversify Your Income Sources

Wealth is built faster and more resiliently when it doesn’t rely on a single engine. My focus is on:

• public and private market investments
• systematic and active trading strategies
• salary, bonuses, and stock awards
• entrepreneurial ventures

Multiple income streams create optionality, the most underrated asset of all.

Personal Reflection: What Works for Me

I’m not a full-time trader or entrepreneur. I’m a professional with a job and a monthly paycheck and I value the stability that brings.

My wealth-building comes from:

• steady income
• disciplined investing
• embracing drawdowns
• rebalancing
• learning
• and showing up month after month, year after year

I don’t chase hype. I don’t try to time the market.

My edge is simple: I focus on what I can control and let compounding do the rest.

Final Thought

If you are early in your investing journey, don’t obsess about finding the perfect strategy. Obsess about building good habits.

Avoid the obvious mistakes.

Stay consistent.

Be patient.

 

And when things get uncomfortable, because they will, remember:

You are getting paid to endure discomfort. That’s where the returns come from.

 

Or, as Ice Cube wisely put it:

“Do not complain about what you didn’t get from the work you didn’t put in.”

Let’s keep putting in the work.