RE:RE:35 = 2 Nice post.
It can be therapeutic to write about a company or an idea you might have. To keep your mind sharp and remind yourself why you invested in the first place. Invest in what you know is such a great idea that few people even do. I think as an investor it's important to try to understand the business you're trying to valuate. How does this business make money? Are the customers satisfied with their services? What does the competitive landscape look like? If you can't answer these questions then you shouldn't even think about buying shares. I believe what often happens is they receive a stock tip from a friend or colleague and then they see the share price move significantly higher and then they buy on impulse, or fear of missing out. The problem with this strategy is that there was never any fundamental reason why they made the purchase to begin with.
There are a lot of opportunities in Canadian small caps but also a lot of rocks to turn until you find that hidden gem. I cannot tell you how many stocks are just not worth it because a, they don't have a sustainable business model, or b, they are not profitable. Many times, if they are profitable then they might not have a strong moat around their business so these profits get eroded with competition.
Investing is like painting a wall and watching the paint dry. There is a tremendous amount of patience that is required to be a successful investor. You only need to find a handful of companies over an entire lifetime and to have the patience to hold on to them. I believe it was Peter Lynch that said, and I'll paraphrase, "dont cut the flower heads and water the weeds." In other words, many people sell their winners and hold on to their losers. The truth is, you should hold on to your winners unless something fundamentally has changed and your thesis no longer plays out.