1. When conditions worsen and the outlook is bleak, do not panic and attempt to do something different. Instead, stick with your team’s plan. It’s when conditions are worst that they begin to improve.
2. Trust your leaders! In most cases, the contribution to performance of a portfolio’s top holdings significantly exceeds their portfolio weightings.
3. Be prepared for the unexpected. It will happen! Preparation is critical in stock selection and training a team.
4. Stay focused. Thinking about unrelated issues neither contributes to investment returns nor gets your team down the trail.
5. Run your team’s best race and disregard what others are doing. Worrying about what others are doing in the market contributes nothing to the portfolio’s return and does nothing to help your team do its best.