I spent 7 years as an Investment Advisor and helped manage over $600M.
There are 10 rules you need to know when it comes to investing.
Here's a breakdown of them in plain English:
There are 10 rules you need to know when it comes to investing.
Here's a breakdown of them in plain English:
1. Focus
Remember why you are investing.
Stick to your plan and don't allow noise to distract your focus.
If there's a "hot tip," don't sacrifice your current strategy unless you do your research.
"Keep it simple and remember what you set out to do" - Charlie Munger
Remember why you are investing.
Stick to your plan and don't allow noise to distract your focus.
If there's a "hot tip," don't sacrifice your current strategy unless you do your research.
"Keep it simple and remember what you set out to do" - Charlie Munger
2. Buy and Hold
Buy an investment and hold it for the long term.
In order to win, you have to be patient and wait for the right opportunity.
"If you are not willing to own a stock for 10 years, do not even think about owning it for 10 minutes" - Warren Buffett
Buy an investment and hold it for the long term.
In order to win, you have to be patient and wait for the right opportunity.
"If you are not willing to own a stock for 10 years, do not even think about owning it for 10 minutes" - Warren Buffett
3. Read
If you want to become an investor, but don't know how or where to start, then begin reading.
The best investing books:
- One up on Wall Street
- The Intelligent Investor
- Common Sense Investing
"You can learn investing by reading books" - Bill Ackman
If you want to become an investor, but don't know how or where to start, then begin reading.
The best investing books:
- One up on Wall Street
- The Intelligent Investor
- Common Sense Investing
"You can learn investing by reading books" - Bill Ackman
4. Control Your Emotions
Control your emotions before they control you.
Fear causes investors to sell at market bottoms.
Greed causes investors to buy at market highs.
"In the world of money and investing, you must learn to control your emotions" - Robert Kiyosaki
Control your emotions before they control you.
Fear causes investors to sell at market bottoms.
Greed causes investors to buy at market highs.
"In the world of money and investing, you must learn to control your emotions" - Robert Kiyosaki
5. Diversify Your Investments
You can't predict the future.
Diversify your investments to reduce losses and take advantage of gains.
"You should have a strategic asset allocation mix that assumes that you don't know what the future is going to hold" - Ray Dalio
You can't predict the future.
Diversify your investments to reduce losses and take advantage of gains.
"You should have a strategic asset allocation mix that assumes that you don't know what the future is going to hold" - Ray Dalio
6. Do Your Research
Don't just invest in a stock because of a "tip."
Do your research on the company first.
"Never invest in a company without understanding its finances. The biggest losses in stocks come from companies with poor balance sheets" - Peter Lynch
Don't just invest in a stock because of a "tip."
Do your research on the company first.
"Never invest in a company without understanding its finances. The biggest losses in stocks come from companies with poor balance sheets" - Peter Lynch
7. Know When to Let Go
Realize when you're wrong and cut your losses early.
Know when you're right and hold on to your investments for the long term.
"I am no better than the next trader, just quicker at realizing my losses and moving on to the next trade" - George Soros
Realize when you're wrong and cut your losses early.
Know when you're right and hold on to your investments for the long term.
"I am no better than the next trader, just quicker at realizing my losses and moving on to the next trade" - George Soros
8. Losses are Part of the Game
You can't invest in something and think you're only going to win.
Expect losses to happen, but that doesn't mean you have to abandon your plan.
"Prepare for losses. Losses are part and parcel of stock market investor life" - Rakesh Jhunjhunwala
You can't invest in something and think you're only going to win.
Expect losses to happen, but that doesn't mean you have to abandon your plan.
"Prepare for losses. Losses are part and parcel of stock market investor life" - Rakesh Jhunjhunwala
9. Invest in Value
Stocks are shares of actual businesses.
If you want to be successful, you first have to understand the business whose stock you plan to buy.
"Don't confuse luck with skills when judging others, and especially when judging yourself" - Carl Icahn
Stocks are shares of actual businesses.
If you want to be successful, you first have to understand the business whose stock you plan to buy.
"Don't confuse luck with skills when judging others, and especially when judging yourself" - Carl Icahn
10. Anyone can Invest
You don't have to be a genius to invest.
Research, be patient, and look for buying opportunities.
"A blindfolded monkey throwing darts... could select a portfolio that would do just as well as one carefully selected by experts" - Burton Malkiel
You don't have to be a genius to invest.
Research, be patient, and look for buying opportunities.
"A blindfolded monkey throwing darts... could select a portfolio that would do just as well as one carefully selected by experts" - Burton Malkiel
Thanks for reading!
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