Long-term investing philosophy as an individual investor.

As you plan to make a success, you need to always check the status of your share.

 

In my case, I normally set a standard to evaluate 'how evil are they' at the moment.

 

For example:

1. How their behaviour negatively impact on the society?

2. How long are they going to persist the current issue?

3. What's their portion in that industry and market?

4. Is there any competitor who follows the modern ethic rules?

5. How EU, US, Japan, China responds to this issue? Do the government preference suit with your share?

6. Can your share seem to sustain the current portion in the market after a decade?

 

If any single example does not meet with your share, then you better not keep it like a decade. You are obviously spending your capital to see how it grows out in future. There may be some variable that tumbles the above ethic behaviour theory (note: not sure whether this is defined in finance) yet it would be temporary.

 

In my case, I own a tiny portion of K(Kellogg) and they faced the strike issue - after K refused to raise the labour's wage. Point is; they sustained the price - thanks to the allocation they provide. The point is; they are somewhat monopolistic competition in that industry and they have to choose whether they follow the ethic or losing their customer. Fortunately, K successfully negotiated with labour union and did not betray the expecation. Unlike Namyang family firm in Korea, the investors sure about the condition of this business. As you aware, if the market in a specific region or country has no substitution of that evil firm, then it would be the power to sustain it regardless of its ethic issue.

 

How would you make your investment? I believe this strategy fits to my style as a long-term individual investor.

 

But, you have to keep one thing in your mind. Set your standard. If something goes down more than specific percentage, you need to make a harsh decision to stop further misery.