Ten Years in PE: Five Mistakes I Made

Ten years in PE investment, countless mistakes. These five errors each cost real money, but also brought the most valuable experience. ## Mistake 1: Over-believing in "Sectors" In 2014, an emerging industry was hot. We followed the trend and invested in three companies. Result: one dead, two wounded. **Lesson**: The sector determines the ceiling, but execution determines survival. Bad companies in good sectors are more common than good companies in bad sectors. --- ## Mistake 2: Ignoring Founders' "Fatal Flaws" Invested in a technical genius who was paranoid and poor at collaboration. The company eventually died from internal friction. **Lesson**: Investment is investing in people. Skills can be supplemented; personalities are hard to change. --- ## Mistake 3: Valuation Gaming Mindset To win deals, pushed valuations to ridiculous levels. Result: Safety margin gone, zero room for error. **Lesson**: Better to miss than to make mistakes. Price determines returns. --- ## Mistake 4: Post-investment "Letting Go" Thought good projects "run themselves," missed the best correction window. **Lesson**: Post-investment management isn't interference—it's companionship and empowerment. --- ## Mistake 5: Exit Timing Twice missed optimal exit windows due to greed, eventually exited at cost. **Lesson**: Knowing when to buy is an apprentice skill; knowing when to sell is a master skill. Taking profit is harder than cutting losses. --- *Making mistakes isn't可怕; not knowing why you made them is.*